I am focusing on a scenario where an entity $A$ sell a service 1 to entity $B$.

Moreover $B$ also sell a service 2 to $A$.

The utility function of $A$ :

U(A)=price from B for service 1-price to B for service 2 + benefit from service 2 ;

while the utility of B is given as

U(B)=price from A for service 2-price to A for service 1 + Benefit from service 1 ;

If I use the same price function for both transactions ; what advantage would I get over two price functions.



Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.