Overview
This advanced course examines strategic pricing, market saturation, and competitor undercutting in concentrated and contested markets. Students analyze how firms deploy pricing, capacity expansion, promotions, bundling, exclusivity, cross-subsidization, and geographic targeting to defend or extend market position.
The course distinguishes legitimate competitive conduct from potentially predatory or exclusionary pricing under economic, legal, and ethical frameworks. Topics include recoupment analysis, cost benchmarks, limit and penetration pricing, loss leaders, below-cost sales, switching costs, network effects, platform competition, price wars, barriers to entry, and market concentration.
Through case analysis, market simulations, financial modeling, and competitive intelligence exercises, students evaluate demand elasticity, contribution margins, rival responses, long-run profitability, consumer welfare, regulatory evidence, and strategic risk. Students develop defensible pricing and market-entry recommendations supported by quantitative and qualitative evidence.
Learning Outcomes
- Evaluate pricing strategies using demand elasticity, contribution margins, cost benchmarks, and long-run profitability measures.
- Diagnose potentially exclusionary conduct by applying recoupment analysis, barriers-to-entry assessment, and market-concentration indicators.
- Model competitive scenarios involving price wars, switching costs, network effects, platform competition, and rival responses.
- Assess the legal, regulatory, ethical, and consumer-welfare implications of below-cost sales, exclusivity, bundling, and targeted pricing.
- Interpret financial, market, and competitive intelligence evidence to distinguish vigorous competition from strategically harmful undercutting.
- Synthesize quantitative and qualitative findings into defensible pricing, market-entry, and market-saturation recommendations.
- Design risk controls for retaliatory pricing, regulatory scrutiny, and unintended effects on competitors, consumers, and market structure.
Timetable
| Type | Length | Frequency | Period |
|---|---|---|---|
| Lecture | 2 hours | Weekly | All semester |
| Tutorial | 1 hour | Weekly | All semester |
| Workshop | 2 hours | Fortnightly | All semester |
| Practicum | 2 hours | Fortnightly | Second term |
Assessment Schedule
| Type | Description | Weighting |
|---|---|---|
| Assignment | Economic and legal analysis of a pricing conduct case. | 20.00% |
| Quiz | Short quizzes on pricing theory and market structure. | 10.00% |
| Test | Quantitative test on demand, costs, recoupment, and competitive modeling. | 20.00% |
| Deliverable | Competitive intelligence and market-saturation assessment. | 15.00% |
| Capstone | Strategic pricing and market-entry recommendation supported by evidence. | 25.00% |
| Exam | Final examination covering integrated course concepts. | 10.00% |
Prerequisites
- Requirement Prior study in intermediate microeconomics, managerial economics, or strategic management.
Teaching Staff & Programs
This course is delivered jointly by faculty from the participating programs listed below. In line with the Douchewater Way, the University of Sexology tailors core instruction directly to each cohort's specific discipline — adapting curriculum to program needs rather than forcing students into a one-size-fits-all model. Learn more about our approach at The Douchewater Way.