6. An Application: Dynamic Monopoly and Price Discrimination (Game Theory Playlist 7)

In this episode we introduce an extensive form game between a monopolist firm and its potential customers. Although the game is sequential, the customers' decisions are simultaneous, which creates the imperfect information. This game is an important example to study how firms can price discriminate and increase their profits by charging different prices for their products over time. We solve for the subgame perfect Nash equilibrium of this game.
It's crucial to watch lecture videos in the proper order to ensure effective learning. This is because the concepts in each video build upon those introduced in previous videos. To help you with this, I recommend visiting my website, www.selcukozyurt.com, for a recommended course outline.

[@amolwanjittamai310]

Amazing lecture as always!

[@daksharora3364]

Hey sir! Sir I wanted to ask should not the value of P1 = 1700 and P2= 500 since this would generate a profit of 3400 which is higher than the profit provided by you (3200) bcoz only high type consumers would purchase it in period 1 and nobody is going to purchase in period 2 or basically I can say low type consumer would not purchase at all

[@RR-og4ut]

Great👏