4 thoughts on “Lecture 6: Profit reducing price discrimination, and product differentiation

  1. I don’t really understand slide 18 of this lecture. – With the FOC for A, I don’t understand where the -PA/2t comes from. Can you help / explain, please? Thanks.

  2. We’re applying the product rule to the expression for firm A’s profits. The term you mention is what you get when you multiply pA with the derivative of the term in brackets.

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