UC Davis Product Differentiation Externalities & Public Goods Discussion
Description
There are three economic topics discussions. The discussions are: product differentiation, externalities, and public goods.
This is the first discussion of chapter 11
You want to sell a substitute product to your rival and you want to sell at a higher price. How do you do that knowing that demand is elastic (Ed > 1) for substitutes?
The answer to this question is product differentiation. Product differentiation is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. Firms add value to their products by differentiating their products and gain market power to charge a little extra for the added value.
Please research a firm that successfully uses product differentiation. Explain the firms product and how it is differentiated.
Here are some examples:
Safe Catch http:// (Links to an external site.)www.inc.com/magazine/201503/jeff-bercovici/building-a-better-can-of-tuna.html (Links to an external site.)
Turmeric water http://templeturmeric.com/press/time-magazine-artichoke-turmeric-and-more-strange-flavored-water-products-2/ (Links to an external site.)
Greek yogurt https://loyoladigitaladvertising.wordpress.com/2013/09/23/yogurt-a-case-study-in-target-marketing-product-differentiation/ (Links to an external site.)
Chobani https://www.ama.org/publications/MarketingNews/Pages/culturing-subcategory.aspx (Links to an external site.)
Think of a generic product and then differentiate it. Explain how you can gain market power (ability to increase the price) by differentiating your product.
Here are some examples:
Generic Differentiated
Canned fish Low mercury canned fish
Turmeric Turmeric water
Yogurt Greek Yogurt
Bread Gluten free bread
Milk Protein milk
Etc.
(Links to an external site.)
Click on ‘Reply’ below to post your answer.
Chapter 13 discussion
Please choose one of the following:
Give an example for a negative externality and explain the inefficiency this negative externality might cause. How should the government deal with this negative externality? (regulation, taxes, subsidies, private remedies, etc.) What would be the most appropriate remedy for your example?
Or
Give an example for a positive externality and explain the inefficiency this positive externality might cause. How should the government deal with this positive externality? (regulation, taxes, subsidies, private remedies, etc.) What would be the most appropriate remedy for your example?
I expect each of you to think of a different example. When you respond to one of your classmates, think about how you would deal with his/her externality. By the end of the week, we should have several cases with remedies. I look forward to reading your posts.
Respond to a classmate’s post.
And the last one chapter 14,
The following lists some of the goods and services produced by the government (education, health and hospitals, police protection, national defense, postal service, prisons, highways, judicial and legal, parks and recreation, fire protection) . Which one of these goods are public goods, which ones are not public goods? Explain your answers using the characteristics of public goods. Could they be supplied by the private sector? What are some of the problems with producing public goods for private firms?Types of Goods and Services Provided by US Government
Type of Good or Service
Employment as a
Percent of Total Government
Education
46
Health and Hospitals
9
Police protection
6
National defense (civilian)
4
Postal service
4
Corrections (prisons)
4
Highways
3
Judicial and legal
2
Parks and recreation
2
Fire protection
2
All other
18
Explanation & Answer: 1200 Words
Tags: externalities product differentiation Public Goods
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