1. What are second and third degree pricing discriminations? How are they different? Please give an example of each and explain clearly why one is third degree discrimination and the other is not. (5 point)
2. Please explain and give an example why versioning strategy for IT (information) product is more profitable and efficient compared to versioning for normal (physical) product. (10 points)
3. As you all know that currently, Android is the market leader in mobile operating systems (OS), followed by Apple’s iOS. Windows Mobile operating system is currently at number three. If you are CEO of Microsoft, what are your strategies to gain some more market share in this mobile operating system (network effect) industry besides buying Nokia? (15 points)