The table below contains the different types of consumers' values for three software titles: Excel, Word and PowerPoint. Assume there are 100 consumers of each type. It costs Microsoft $5 to produce each piece of software. If Microsoft wants to devise a pricing strategy that is incentive compatible among the consumer types and will maximize its profit, then discuss how should Microsoft price their products?
- Consumer Type PowerPoint Excel Word
- Marketing/Sales $115 $70 $125
- Accountants $65 $90 $140
- Admin Assistants $40 $165 $55