Thestructure–conduct–performance(SCP)model

payoffs 334 pedagogicalapproach 14 perceivedprice 423 perceivedquality 92, 150, 423 perceivedvalue 424 perfectcompetition 289, 291–299, 474 perfectinformation 291, 337 perfectknowledge, see perfect information performance-relatedpay(PRP) 53 Peterson,R.A. 428 pharmaceuticalindustry 7 Phelps,C.E. 121 Phlips,L. 521 physicaleconomiesofscale, see economiesofscale Pinker,S. 27 pointelasticity, see priceelasticityof demand pointestimate 140, 162 PollyPeck 56 polynomialfunctions 143, 144, 280 Pompelli,G. 121 pooleddata 130 populationparameters 157 populationregressionfunction 140, 157 populationregressionline, see population regressionfunction Porter,M.E. 385 positivestatements 9, 471 Posner,R.A. 27, 520 PostOffice 503–506 postalservices 503–507 post-contractopportunism 39–40, 514 potentialmonopoly 480, 493 powerformofregression 137–138, 144, 145 powerform 78–79, 101, 106, 107, 109, 268, 271, 417 powerfunction, see powerform Pratten,C. 269 pre-contractopportunism 38, 514 predatorypricing, see pricing Prendergast,C. 69 prescriptivestatements 9 pricecap 486, 487, 490, 501 priceconstraints 486 pricediscrimination 7, 498 firstdegree 397 seconddegree 90, 397 thirddegree 398 priceelasticityofdemand(PED) 79, 99–120, 138, 306–308, 391–392, 396, 403, 417–421, 464 adjusted 100 arc 100, 105

point 100 simple 99 price-fixing 317, 325–327, 497 priceleadership 324 barometric 324 dominant 324 pricelining 424 price-maker 304 pricepromotion 424 pricerigidities 319 price–qualityrelationship 150, 423–424 price-taker 237, 291, 304 PricewaterhouseCoopers 49 pricing dynamicaspects 421–422 limit 302 multiproduct 405–411 odd 424 predatory 302, 376–377, 479, 498 prestige 424 transfer 411–416 Prisoner’sDilemma(PD) 334–336, 370, 497 privatecosts 215 privateinformation 41 privateschools 325–327 privatization 477, 486–490 prizemoneyintennis, 17–18 probability 440–441 prob-value, see significancevalue producersurplus 310, 386, 391, 392, 394, 403, 474 productdifferentiation 313, 317, 318, 323, 324, 345, 400 productlife-cycle(PLC) 421–422 productline 60–61, 387, 393, 399, 406 productmix 387 productionfunctions 178–179, 182–183, 226–227, 256 product-linepricing, see multi-product under pricing profitconstraints 486 profitcontribution 238–239 profitmargin 306, 391, 392, 394 profitmaximization 65–67, 190–191 long-run 49 product-line 60–61 product-mix 49 short-run 49 profitabilityindex 453 promotion 92 ofcompetition 477, 490–493 promotionalelasticityofdemand(AED), see advertisingelasticityofdemand