Strategic Pricing

This article will explore an overview of pricing strategy. We begin by explaining the simple Cournot and Bertrand games, which are game theoretic analyses of a firm’s pricing strategy. With this information we proceed by explaining what strategic complementarities and substitutes are before looking at a paper by Fudenberg and Tirole entitled “The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look”.

Cournot Game
In this scenario we have (at least) two firms who compete on the amount of output they produce, choosing the quantity simultaneously and independently whilst taking the output decision of the other firms as given. [...]

Standards of Living during the Industrial Revolution

The debate about living standards in the Industrial Revolution has recently focused on anthropometric measures, such as height and mortality, and linked these to the ability to work more intensively. Describe how these factors may be related. Discuss what the anthropometric evidence reveals about living standards in this period.

Anthropometric measures add a new light on the debate and show whether people were healthier as a result of the industrial revolution. If they were then they would have been able to work more intensively because they would need fewer days off work due to fatigue or illness. Schultz believes that there is a positive relationship between height and productivity because height is a measure of nutritional status and better fed, healthier people could work harder. [...]