And you know that it's going to be 100.

Then auctions like eBay are another example of dynamic pricing.

I could actually price on specific customer segments or on features I know they need.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

There's no haggling.

But there are two types of prices.

It turns out we made this pretty easy.

One is fixed prices.

So I'm just going back to what I said earlier.

In companies do you know how much each individual department can sign off for?

Preston promised his car would sell for 1,000.

Let's take a look.

I'm going to talk about two stories today.

Well, let's put a tax on oil that is a non revenue tax, and it basically says for the next 20 years, the price of oil will be whatever you want, 35 bucks, 40 bucks.

We are essentially saying the demand, the Price Quantity demanded relationship is held constant and we can pick a price and we'll get a certain quantity demanded.

licensing and intermediation and direct sales, etc.

But there's another type of pricing.

What s the revenue stream. That s our strategy.

But how do you think about pricing itself?

That's a mistake.

Set a price for this item

And that tells you that the book value per share is 4.

That just means that the last three yield management, real time, and auctions are examples of dynamic pricing.

It's the best price that someone's willing to give you for something.

Cost plus market, value pricing, and volume price are all examples of fixed pricing tactics.

And we see that the last trade here was for 2.58.

So each of those shares is one 500 millionth of this equity.

It has been made possible, by the way, for certain other different reasons.

Here's how it is. It's the fixed price.

Price

And then kind of the third common errors, my price hast to be less than my competitor's price.

But they actually are calculated in slightly different ways.

The stock market is a real time market.

We'll just add a markup that is a profit, and therefore we have a price.

The market drop has cleaned me out.

How could you have prices that kind of move?

It's not about low cost.

So let's talk about our first scenario here, where let's say this curve, people didn't expect prices to change for my e book and now all of a sudden, people expect there's a change in expectation.

If you ever think about it, pricing that you negotiate yeah, we kind of have this price on paper, but that's just the starting point of the conversation.

So if the sale is twenty five percent off of x, we could say that the new price, the sale price will be x minus twenty five percent of x is equal to the sale price.

It should be a value based decision.

And so the first of these that I will focus on the first is the price of competing products.

For any given price, it's going to lower the quantity demanded.

And let's say that there are 100 million shares.

And this is just because this is less risky, and sometimes they'll even make it on a temporary agreement.