Publications
Publications
- November 2004
Principles of Microeconomics for Strategists
By: Felix Oberholzer-Gee, Pai-Ling Yin and Elizabeth Raabe
Abstract
Reviews microeconomic principles from a business strategy perspective, using the digital music industry as context. Contains three modules: demand, supply, and equilibrium. The demand module discusses the willingness to pay, market demand, price elasticity, and marginal revenue. The supply module explains elements of concern to a Sony manager producing hard drives for MP3 players--fixed, variable, marginal, and average costs; and short-run and long-run elasticity of supply. The third module discusses equilibrium and market power, optimal pricing, and price discrimination. Includes several exercises to test learning.
Keywords
Business Strategy; Supply and Industry; Demand and Consumers; Microeconomics; Balance and Stability; Price; Cost; Revenue; Music Industry
Citation
"Principles of Microeconomics for Strategists." Harvard Business School Tutorial 705-801, November 2004.