solution

Suppose that there are two different customer segments for a multiplayer online video game, and the publisher has developed two versions of the software. The “Elite Edition” does not grant any in-game advantage over players of the less-expensive version (so they can play each other fairly), but the “Elite Edition” includes additional software features like a single-player mode, support for virtual reality headsets, and a game map editor.
Each customer will buy the version that gives the highest surplus. For simplicity, use whole dollars for all prices.
Willingness to Pay
General Public Hardcore Fans
Elite Edition $150 $200
Gamer Edition $75 $100
If there are 100,000 each of general-public and hardcore-fans as potential customers, what are the optimal prices and revenue if the seller must post a single price for each edition?
Price for Elite Edition: Total revenue:
Price for Gamer Edition:

If there are 100,000 potential general-public customers but only 1,000 hardcore fans, what are the optimal prices and revenue if the seller must post a single price for each edition?
Price for Elite Edition: Total revenue:
Price for Gamer Edition:

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp