A) A retailer wants to sell some DVDs to 4 consumers (A, B, C and D). Assume there are only 4 DVDs in total to sell and that the retailer has committed to lowering the prices in period 2. The...

A) A retailer wants to sell some DVDs to 4 consumers (A, B, C and D). Assume there are only 4 DVDs in total to sell and that the retailer has committed to lowering the prices in period 2. The valuation to the different consumers are as follows:

In your hand written solutions, describe the first round price, second round price and profits for the retailer. Show all your calculations.

B) Now assume that there are only 2 consumers (A and C). The valuation to the different consumers are as follows:

In your hand written solutions, describe the first round price, second round price and profits for the retailer. Show all your calculations.