12-2 Parking at Cowboys Stadium What would efficient revenue management imply fo
ID: 1096213 • Letter: 1
Question
12-2 Parking at Cowboys Stadium
What would efficient revenue management imply for the pricing of the Cowboys Stadium parking lot on typical game days? How about for the Super Bowl? How about for the many smaller events that fill less than half the lot?
12-6 Radio Stations and Rock Concerts
Clear Channel, an owner of multiple radio stations with the Top 40 format, recently bought rock concert promoter Live Nation. How would this affect prices for concert tickets or rates for radio programming?
12-3 App Pricing for Droids
Droid-based smart phones and Droid-based Apps are complements. The existence of more Apps makes Droid-based smart phones more desirable and thus causes the demand for phones to become less elastic. Since optimal simple pricing implies (P-MC)/P = 1/|e|, this means that the desired markup. 1/|e|, has risen. The optimal price for Droid-based phones will tend to rise.
The actual price may not in fact rise if the producers anticipated this and engaged in penetration pricing initially. Still, the optimal price will tend to rise.
Every week, more and more apps (applications) are available for Droid-based smart phones. How does this affect the optimal price for Droid-based smart phones?
12-6 Radio Stations and Rock Concerts
Clear Channel, an owner of multiple radio stations with the Top 40 format, recently bought rock concert promoter Live Nation. How would this affect prices for concert tickets or rates for radio programming?
14-1 Barbie Dolls and Accessories
Why might Mattel set a much lower contribution margin on its Barbie dolls than on the accessories for the dolls?
14-2 German Brothels
German brothels recently began offering a monthly subscription service for multiple purchasers. If you thought that the brothels
Explanation / Answer
2)
Efficient revenue management in this case would mean that charging a higher price during bigger events such that the revenue would be higher and charging a lower price at smaller events.
Super bowl is a large event, thus, the pricing for tickets should be high enough.
6)
This will lead to increase in prices of the tickets. Since, the promotion of the concert will reach to various parts of the country, the demand for the concert tickets will go up, leading to a rise in the price.
3)
Since, there are new apps available on droid phones; this will lead them to be more tech-efficient and thus there will be rise in demand for such phones. Hence, the price will rise.
1)
Mattel sets a much lower contribution margin on its Barbie Dolls than on accessories for the dolls, because Mattel wants to earn the broad customer base. It would enhance the demand for the Barbie Dolls and Mattel can recover the cost through the accessories. Customers would be compelled to buy the higher margin accessories.
2)
Suppose one believes that brothels are immoral, but it is not necessary that the pricing strategy used by them is also considered immoral. This, is so because such pricing strategy used is just one techniques to earn a higher revenue used in any market.
3)
When someone invents something new he/she gets the patent registered for that invention and gets a fix amount from those people who use that invention. So when a person invents something in the family business he/she can make it legal by getting the patent right and receive a desired amount for that.
4)
If the men and women are in equal number, then charging $70 for a simple microwave and $150 for an auto-defrost would generate high revenue.
If women are in bulk then charging the price at what they value will generate high revenue.
5)
Yes, Pandora
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