Suppose that there are two different customer segments for a multiplayer online video game, and the publisher has developed two versions of the software The Elite Edition does not grant any in game advantage over players of the less expensive version (so they can play each other fairly), but the Elite Edition includes additional software features like a single player mode, support for virtual reality headsets, and a game map editor Each customer will buy the version that gives the highest surplus For simplicity, use whole dollars for all prices Willingness to Pay General Public Hardcore Fans Elite Edition $150 $200 Gamer Edition $75 $100 If there are 100,000 each of general public and hardcore fans as potential customers, what are the optimal prices and revenue if the seller must post a single price for each edition (25 pts) Price for Elite Edition Total revenue Price for Gamer Edition If there are 100,000 potential general public customers but only 1,000 hardcore fans, what are the optimal prices and revenue if the seller must post a single price for each edition (25 pts) Price for Elite Edition Total revenue Price for Gamer Edition

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Question: Suppose that there are two different customer segments for a multiplayer online video game, and the publisher has developed two versions of the software. The

Suppose that there are two different customer segments for a multiplayer online video game, and the publisher has developed two versions of the software. The Elite Edition does not grant any in-game advantage over players of the less-expensive version (so they can play each other fairly), but the Elite Edition includes additional software features like a single-player mode, support for virtual reality headsets, and a game map editor.

Each customer will buy the version that gives the highest surplus. For simplicity, use whole dollars for all prices.

Willingness to Pay

	General Public	Hardcore Fans
Elite Edition	$150	$200
Gamer Edition	$75	$100

If there are 100,000 each of general-public and hardcore-fans as potential customers, what are the optimal prices and revenue if the seller must post a single price for each edition? (25 pts)

Price for Elite Edition: Total revenue:

Price for Gamer Edition:

If there are 100,000 potential general-public customers but only 1,000 hardcore fans, what are the optimal prices and revenue if the seller must post a single price for each edition? (25 pts)

Price for Elite Edition: Total revenue:

Price for Gamer Edition:

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