Congratulations, Maya. Glad you like your time. And you, Harry? I think this goes for a celebration. I've got some champagne in the car. I got it for tonight, but if we drink it up, well, my guests can drink beer. Harry, get some glasses. You take that, Maya. I'm for an appointment in his life. He has absolutely no consideration for other people. You're not hopefully fond of your son, are you, Mr. Cary? Cecilia, if you'd spent the time and money and effort I have to make that young man realize who he is and what he ought to be doing in the world, you'd known Tom Long. No. Oh, and perhaps from longer experience, who might enlighten her? Well, I presume what Mr. Cary means is that, on ordinary terms, Tom doesn't seem to have got very far. He's wasted his life from the cradle.  I assure you, he's genius, for it's showed even then. I send him to Harvard, and he lasts two years there. I send him to Oxford, and he commutes from Paris. I put him into the bank, and he... the whole world at the feet of that boy, the whole world. And all he's ever done is to run from it. Well, you know, Tom has his own ideas about what he wants to do with his life. Yes, weekend. A radio message came by phone for him. Oh, thanks. You can leave it here. I'll take care of it. Right. Everything satisfactory? Yes. Yes, quite thanks. Like a drink. And make yourselves at home. He'll be right along. The butler? He's charming. He looks like a prize fighter. He was. There, there now. Don't worry. Tom will be along any second now. If what I think is true, I hope he never comes along. What? Well, I'll tell you what's in my mind. Heaven knows I don't want it there. That girl, he's been living with for the last three years. Oh, just a minute, sir. It's all right. Could you but there's no secret, is it? Who is she anyway? What is she? An extremely nice girl. Hardworking, talented. She draws for one of the fashion magazines. And very successful. She left three months ago for her magazine's Paris office for an indefinite stay. Oh, maybe she's coming back. What of it, Mr. Collier? What of it? Everything of it. It's like him to marry her. I'm surprised he's missed it as long as he has. Well, I've stood for his rowdy friendship. I put up with his idleness, his ill-managed insolence. I'm sorry, Mr. Collier. I'll have to ask you to let it go with that. Why so? Because it so happens that I'm why we're here. How's that? It's me, Tom's going to marry. And I've heard enough against him to last me quite a while. See, what are you talking about? Marrying. I see, I thought... On June 1st to be exact, he asked you out here to tell you. And I imagined to receive your good wishes. My dear. My dear, I congratulate Tom and myself. And I hope it'll work out for you. I hope he won't be utterly impossible as a husband. He has been at everything else I wanted him to do. I don't agree with you. Tom's the most interesting, most attractive man I've ever known. I consider myself shot with luck. Very loyal. Not at all. I simply believe in him. Not in his so-called past, perhaps.  But certainly in what's to be. Faith is a beautiful thing. I think so. Well, if you can make a respectable citizen out of Tom Collier at this date, you'll have nothing but praise from me, my dear. It seems not to occur to you. But when Tom has someone who really understands him, to work and care for... Understands him? Yes, completely. Why, you'll make what you call a respectable citizen of himself. You think so? I know. And if what you laughingly refer to as my faith is of any use to him... Love will conquer all. Yes, yes, of course. But forgive me a few doubts. Oh, how's that, sir? Darling, I'm coming back. Arrive on Paris at eight tonight. Much love days in. Well? I know all about her. Did you know she was returning tonight? No. Neither did Tom. Owen, I'd like a few words with you. If she's ill, you will pardon us. Certainly. I meant to tell you on the way over, Owen. But then I couldn't. See, how did that happen? Very suddenly. Very sweetly. Yesterday. I'm sorry. You asked. If you'll excuse me, I... I think I'll see what Mr. Collier wants. Hey, Tom. Oh, uh... Take my hat, will you? Thanks. Now get out. I just wanted to tell you that later... But there's a get, will you, really? A radio message come for you. Oh, get out. Hello, darling. No. You're late. I'm furious with you. Late? Is that all right? That's terrible. I've taken up with a thrifty spinster. That's all you deserve. Well, where are they, Father and Owen? In the other room. Tell me, darling, did you really say you'd marry me? I'm afraid I did. Oh, heaven help us both. Just this one marriage, please. You know, I haven't been very good about marriage. I was exposed to a very bad case of it as a baby. We must make a grand go of it. Oh, we shall. Never you fear. Well, you just do everything I say, and it'll be all right. With pleasure, sir.  Oh, I feel good. So do I. Do you? My lovely sea. Stop it, Tom. You're embarrassing me. Why? I feel quite naked. You look marvelous. I'll have dinner in a couple of minutes, Tom. Here, glasses with ice and run all the way. Right? Did you get your radio message? What message? Goodbye. Don't tell me if you don't want to. But I do. I'd always intended to at the first opportunity anyway. And suddenly it seems here it is. Well, see, for a long time I've known... known intimately, a girl who's been very important to me. Yes. Daisy's done more for me than anyone in this world. She's the best friend I've got. I believe she always will be. I'd hate terribly to lose her.  Well, no arrangement at all, really. There's never been any idea of marriage between us. Well... Is she attractive, Tom? To me she is. I don't believe you'd like me half so well, if Daisy hadn't knocked some good sense into me. Someone's done a good job of it. I'll tell her that. I sent her a long cable this morning all about us. Of course, she never got it, because this... this came from the boat. She lands tonight. I see. See, we've... Well, we've been everything possible to each other, of course, but... Yes, Tom? At the same time, as free as air, there's never been any feeling of conventional responsibility towards each other involved in it. I can understand that. Can you see? Because I never could. Anyhow, that's how it's been. We haven't been what you'd call in love for a long time now. Does she know that? She knew it first. Well, I don't know what more there is to be said about it, except that there's no need for you to worry. You won't, will you? Not if you tell me I needn't. Well, I do. And finally, I think she ought to know the news about us pretty promptly. Yes. Probably. Well, is anything I do about that all right with you? Of course. Thank you, see. Oh, hello, Father. Hello, eh? Evening, Tom? Good evening. You said five o'clock. It's seven, and I... Oh, did I? Is it? Listen, you and Owen, I want to tell you what this is all about. We know. We've heard. He was abusing you, so I had to tell him. And it didn't discourage you? On the contrary. Oh, stout, huh? Well, thanks very much, sir, but I think I'm the one to be congratulated. Yes, indeed we are. Yes, I'm sure we shall be. Hello, Red. There you are. That's the boy. That's my father over there. Oh, glad to meet you, sir. And my fiance, Miss Henry. Well, here's how and why and wherefore. And you know where marriage is amazed. Is it all right? Swell. Well, that's splendid, and we're all satisfied, aren't we? Yeah, just a moment, Red. Did you put the car away? Say, how many hands have I got? Well, don't. I shall need it. Right. Father. I'm afraid I'll have to ask you to do the honours at dinner. Oh, why? How's that? I find I have to go straight back to town. Now, you'll listen to me. Seems to me extremely important that I should do it at once. In fact, I can't do otherwise. You have the effrontery, the colossal bad taste on the night of celebrating your engagement to a fine, trusting, loyal girl to go from her, your fiance, to your... Same old difficulty about words, eh, Father? Never mind. None of them apply to Daisy. Well, I suppose you know better. If you leave here tonight... Yes, much. Much better. Till tomorrow, my angel. My poor child. I'm sorry to see you. Oh, I think you did exactly right. The beautiful thing faith. A beautiful, beautiful thing. Tommy. Daisy. I was looking for you at the dark. I'm so sorry. I didn't get your message in time. Oh, come in. All right.  Hello, Daisy. Now, it seems though I hadn't been away at all. That is... Oh, come sit down. I've so much to tell you it'll take hours. Ah. Tom, two of the most exciting things have happened to me. Not one, two. Really? What were they? Oh, I'm bursting with them. Daisy, I... Now, you tell me. Come on. Well, my heaviest letting ought to be over in a few weeks. By the first of June anyway. What have you got on the fire? Much? Yes, a good deal. The fact is I... Well, work day and night until the first of June, and then come to Mexico for a month with Daisy. Oh, I'm dying to go because, well, first of all... What?  I promise you won't be the word of it anybody. Tom, I think I can paint. Well, that's no surprise. I've always thought you could paint. Well, then you've always been wrong because it's new. It's just in the last two months. I believe if I work my eyes out and my fingers to the bone that someday I may really paint. You must be hard on me now. No parties, no playing around, just work. And you mustn't let me show until you know I'm ready to. Does that agree? All right. You got a funny instinct about those things, and I'm counting on you. That's the first thing. That's the second thing. What? Suddenly I feel shy with you. Oh, I don't like it. I don't like it a bit. It's been a long time, Daisy. Too long. Perhaps I'd better wait to tell you the second thing. No. Tell me now. Oh, my dear, what's wrong with us? Come here to me. That's better. I don't feel it so much now.  You always have been with me. No questions asked. But oh, please, Mexico and June together, because listen, no, don't look at me. Look the other way. On the boat coming over. The sweetest small boy, about two. And I got crazy about him, and I want one. I want one badly. So will you please be good enough to marry me? Oh, you always used to say you wanted to, only I wouldn't let you, and... Well, you didn't be terribly serious. It's not a life sentence, you know. Just for a little while if you like.  Then after I get my stuff through the July issue, Mexico for a month together. Oh, I love you so much. I was a fool, everything I didn't. So come on, Tommy, be a good sport, and give me a cigarette. Daisy. All right, never mind. Let's forget all about it. That is a foul necktie you've got on the car. Daisy, I... What is it? Oh, you're going to tell me something terrible. What is it? I'm going to be married, Daisy. Listen, my darling, you can't care so much. You can't. It's simply that you and I naturally are... It must have happened pretty quickly. Daisy did. A month ago we hadn't even met. It was a... You can spare me the details, please. I don't even want to know who she is. Who is she? Cecilia Henry, her name is. Behold the bridegroom cometh. And no oil for my lamp, as usual.  Foolish, anyway. When is it to be, soon? About the first of June we planned. June? Oh. Well, in that case, Mexico would be out. But I never dreamed... I feel so awful. Remember me, Tommy. Daisy, there's to be no nonsense about not seeing each other again as friends or any of that, you know. Oh, but there will be that, now, a sense. Oh, yes, there'll be that, all right. I don't understand. I don't see why we shouldn't. I thought for a long time we'd been out of danger so far as... Well, so far as... Wanting each other goes? Well, Henry. Speak for yourself, Tommy. You, too, Daisy. You first, I thought. Well, it's true that side of it was never so much to us. Not in comparison, not... Well, not after those first crazy months. I thought that was natural. I was even glad. Glad that it was other needs that held us together. So closely. Not a claim. Never a claim, but so closely. Tom. Tom, do you have to marry her? I want to marry her. I thought maybe you just wanted her. Wanted her most awfully. No, no, no. It's more than that, much more. I don't see how you can quite tell that. For all our big talk, you know, we do still belong to the animal kingdom. If you knew her, Daisy... Yes, well, I don't.  Never will be. I know that. But this, it... I don't know. I can't tell you. Don't try, don't try, don't try. Goodbye, you tomcat. Goodbye. Until when? Doomsday, my darling. What are you talking about? Just that. Now, you listen to me. I know it will allow two people who mean as much to each other as you and I do to be separated by any such false, ridiculous notion as that you're mistaken. Just you try it. Tell me goodbye. I'll do nothing of the kind. Oh, yes, you will, you must. You have to. Sharp, decent and clean. No loose ends between us two. But it's not decent. It's soft, it's sentimental. It's the kind of thing you'd never have any use for, taught me never to. Goodbye. I will not say it. Goodbye. You must. Listen to me, Daisy, please. And some things of yours that are here. I want you to take them along with you, please. Frank got me a new maid just before I landed. I let Harriet go when I left. Well, the new maid had a swell hunch about us, she did. Some shirts and things of yours that were here. She wrapped up in a nice little bundle. Well, she gets the gate for it, the big swede. I don't believe in this. I don't believe in any of it.  Fetch, Thomas. There's quite a neat, tidy little bundle. But if it stays around here, well, I don't quite see myself crying into an old shirt, do you? I work to do my son a great deal of it. Now, won't fetch? Then kindly permit me to. And you will say goodbye to me. You've said it so many times so brightly. Say it this time, sadly. You will, won't you? We'll make it an unmarried ceremony. Keep everything quite regular. It will take my hand in yours as one splendid gesture. And murmur of goodbye, my Daisy. Thanks very much. A charming association. As long as we two shall live. There you are. Thank you. My dear, I'm congealed. I can't say I envy you and your husband the trip into town. It's not my idea. Well, why do you do it, see? It's so grim. Tom wants to. Oh, such loyalty. It's her first showing. And he thinks for some reason we should be there. Who is she anyway? An artist? Sage her name is. Tom says she's good. Oh, well.  We see a few people of any description anymore. Yes. Don't tell me about the hermit life you live. I think the least you could do would be to come to my Sunday breakfast now and then.  Do see. Perhaps we shall. Well, not if you're going tonight. Perhaps we shall go in tonight. Oh, so that's the way it is. Well, well, well. Ah, with us again. With you again, yes. See, don't you think we'd better be getting underway, dear? Oh, we've got hours. I read the new book you published last week, Tom. Oh, yes? What do you think of it? Superlative, my dear. I was simply ravished. Well, that's something, isn't it? Isn't he beyond words? You're the world's funniest man. You couldn't possibly be funnier. Ah, you don't know me. Oh, yes, I do. Don't you adore at sea? The book, I mean. I like it very much. In fact, I'm afraid it was I who made Tom take it.  But, my dear, everyone's simply devouring it. Well, there'll be a lot of sickness this winter.  He'll make enough on that one book to bring out ten he really cares for. Yes, I suppose that's the way it works. Oh, uh, Father called today. What he want? He wants us to dine with him on Wednesday and spend the night. Oh, come on, darling. Get us out of it, won't you? Again? How can I? I don't know. Tell him I'm up to my eyes in work or anything else he won't believe. Take the old cars, frozen stiff. Oh, well, I could easily send you in a closed car. Sammy and I might even join you. Oh, thank you. We cannot accept your sacrifice. Really, he's extraordinary. He defeats me. Well, I guess I'd better be barging along, as they say. I, uh, I'm sure it's getting colder by the minute. Yeah, it's almost cold enough to... You know, I think we'd best bring the Brass Monkeys in tonight, don't you? The, uh... Good night, C. Good night, Grace. Not too really. Well, uh... Yes, I'm afraid I must. Oh, now don't forget. You're coming to my Sunday breakfast tomorrow. We're having the most amusing people. Of course, that's just what Sunday breakfast needs, isn't it, C. Mind you, the coffee must be very hot as well. Good night. Good night. Good evening. Why did that desperate butler must embarrass you to death? Not much longer. Tom's promised to fire him tonight if he isn't completely insensible. Here, you'd better get to bed, hadn't you? Just where I'm headed. Here, just a moment, Red. Now, all right, bring a couple of bottles of beer, will you? Right. What did you say to Regan? Regan? He never drinks on duty. Why shouldn't he have the right to get slightly mellow on his one day out? Slightly mellow? He can hardly stand. When I said good evening to him, he didn't even answer. Maybe he couldn't speak.  So low, he nearly fell over. Well, you know, it's pretty hard to gauge a bow under those conditions. Selfish of us to keep him. Selfish? Well, we're certainly depriving him of any chance he ever had to make anything of himself. Hang it, see, he broke his hand. He'll never fight again. I don't mean fighting. Well, these are hard times. I don't know what else there is for him. I'll leave it to you. Do as you like about him. And you know, I feel somehow... I feel somehow that Red's good luck for me. I don't know, we understand each other. I'm awfully fond of him. You must be, to ruin whatever chance in life he might have. I wouldn't do that to Red. You know I wouldn't. You're doing it, though. What possibly could be more degrading to a man than housework. I don't know. I wouldn't like to tell you, darling.  Where's my whip? No, it's just that in your delightful, casual way, you've never thought of his side of it. I wouldn't do that to Red. I really wouldn't. Ring for him, see. Not me. I've nothing to do with it. Do you have to change or are you ready? It seemed to me you were unnecessarily rude to Grace. I have to change. Now we've got to go to her breakfast in the morning. Honestly, see, all my life, I've been trying to get away from her kind of people. Takes all kinds to make a world. Yes, and then what have you got?  I suppose you feel we must go into town tonight? Of course, why? An exhibit last several days, doesn't it? Yes, but I want to be there tonight, tonight's the opening. Besides, they'll all be there tonight. Have you seen any of your old friends lately? No. Why not, dear? Oh, and the girl, Daisy, um... The one who's exhibiting tonight. Have you seen her? No. Why not? I thought you felt her friendship was important to you. She won't see me. Won't see you? No. Come on, see, be a good girl.  Oh, dear. What's the matter? Nothing. Dear, what is it? Oh, just this blasted headache. I've had it all day. Oh, well, shame. The cold air will fix that up. Was that that gave it to me? Honestly, Tom, I don't think I can face it. What? Why not send her a wire? Best wishes. That's enough, isn't it? No, no, no, that wouldn't do. I'm sure she'd be every bit as glad to have a telegram. See, darling, listen, Daisy's been working for years for this. A telegram wouldn't do at all. I simply got to be there. There's no particular reason why you should go. I can go alone. I'll come. Listen, dear, you... Put them down there, will you? And wait a minute, what's the rush? Stick around. Certainly.  No, I'll come. Well, drag him a chair, Red. One more is about all I need. You know, this morning, if all the bad heads in the world were put together in a row, my head would have got up and sneered at the rest of them. Well, here's how. That's the stuff. That builds you up, eh? Yo. Oh, say, have you seen this one? I shouldn't think so, no. Tell me where to stop it and remember the card. Got it? I got it. Where is it? It's gone all right. Feel in your pocket? Not this time. No? No. Is that it? Marvelous. I paid five dollars for that trick. Oh, girl. I'll let it go for two ninety-eight. Was it cold in town today? I don't envy those guys selling apples on the corners. Oh, not much of a job that, eh? Women's work. Pretty tough times, all right, eh? Say, look here, Tom. What? If I... nothing. If you're ever hard up, though, you know where to come. That goes both ways. Red, I might just as well tell you right off. What? Nothing. Say, how's your father these days? Oh, never better things. Red, do you ever think about your future? I guess where I'll go, it'll be plenty hot. I mean... Oh, you mean here? Now, that's a funny thing because, listen, Tom, maybe I... I'll let it go. No, but what? Fill her up, will you? Not much of a future in battling, eh, Red? Oh, well... You know, I'm certainly grateful to you for all you've done. Ah, be still, will you? I am, though. That's fine from you. I'll never forget when I was... and you will never forget it. Put it there, old boy.  I don't know what you think of me when I... When you what? When I... Well, what would you say, for instance, if I... Nope, it's no good. Here, you're not in any trouble, are you? Trouble? Me? What trouble? Well, then look here, Regan. Well, Chief... Tom Cully for president. The people's judge. Now, now, listen to me. Wait, wait, Tom, Tom, I just gotta tell you. Don't hold it against me, but I'm quitting you. I've took another job. You what? That's what you'll say. Holy cats, man. I couldn't stand it any longer. She don't like my ways. I mean the Mrs.  Last week, Mo Winters told me he wanted to open a country gym. And would I run it with him? On the order of Muldoons. But with a little bar attached. Heaven help me, I give him a word. I see. Well, what's there in it for you, Reg? Ah, don't put it that way, Tom. I really want to know. It's been a month and a smell at the gate, if any. That's all right. Sounds like a good deal. Let it go. I'll phone him. No, no, no, no. When'd you start? He wanted me last Wednesday. I've been trying all week to get up the nerve to tell you, but... Well, but... How long did it take you to pack? Well, well, there's my hat trunk and my shoe trunk. And a trunk for my fancy dress ball clothes. This new leave by noon tomorrow.  Not a minute later. Okay, Chief. I'm sorry you had to take it that way.  I'm overjoyed for you. What? Absolutely. Here's to the new job. Take it from me, boy. You're the goods. Well, you've got your points, too, you know. Anyhow, you'll explain to the Mrs. Yes, of course. Tell her I'm sorry. Hope no inconvenience. Yes, I'll explain, Reg. So long, Tom. Goodbye, Red. So long, Tom. Goodbye, Red. I'll give you a ring how it goes. Yes, as you do that. That's all right. Keep your bib clean. I will, old boy. Good luck, Tom. Tom. Ready? Not quite. Did you tell him? You know, I miss that guy. I miss having him around. Well, I know, darling. But it's for the best. I'm sure of it. I feel somehow that my luck's going with him. I'm your luck, darling. See, you feel good. Do I, dear? You haven't any clothes on. Go along now. Dress. Dress quickly. We've got to run. Come and help me. No, you'd better not. Do you remember this negligee? I came across it in the bottom drawer. My spine simply melted. Quebec? Yes. You'll make us late. What of it? We're late already. We'll miss it. Well, what if we do? Oh, darling. You're the limit. Ten minutes ago you said, Tom. What do you? You go in alone. I decided to stay here. You've what? Yes, it's too cold. I will tuck myself in my warm bed and read. Good night, lover. I'll miss you. Look here, I'll stay. No, no, no. Good night, darling. You'd better take your heavy coat and keep warm. Hello. I want to send a telegram. I would have an exhibition, wouldn't I? If I were to believe the critics, I ought to be painting signboards. There are no judges of one's work, but one's self, Daisy. I wonder who that is. Hello, Frank. Hello, Tom. Is Daisy in? Yes. I think I'll run along, Daisy. No, don't go, Frank. Yes, I must go. Goodbye, Tom. Well, speak to me somebody, will you? Am I a leper? What would you like me to say?  Thanks. I think I will. Well, it was nice of you to ask me over. Yes, but I didn't, you see. Well, it was nice, anyway. Whatever made you think I wanted to see you? Nothing, except that I wanted to see you. How's, uh, how's it coming? How's what coming? I mean, the job. Job? Oh, the job. Oh, I gave that up last winter. A trifle, shall we say, quixotic of me. Shall we? How's Joe's book doing? Haven't you seen him? No. Joe's book is doing fine, thank you. Of course it can't compare with the magnificent volumes being brought out by your Bantam press. Indian summer and young ecstasy. Ouch. Oh, what on earth made you take those things on, Tom? Oh, I know, money. However, Daisy, I've reformed. You wait till you see the Bantam's new list. I'm waiting. I hear Frank's a hit. She is. Our exhibition today. Oh, did you really? Funny I missed you. What did you think of it? Well... Oh, tell me. Daisy, I don't think you were ready to show yet. How are the notices? Appalling. I suppose their reasons are all wrong. Yes, of course they were. What were yours? Well, you've been painting less than a year. Yes. And yet you had about 30 canvases to show. 32. An awful lot, Daisy. Then you didn't like any of them? Oh, yes. One I love particularly. That one with the milk bottles on the doorstep, you know? I'd like to buy that one. That's number seven. Sorry, not the sale. Oh, of course your drawing's a marvel. Only what? Well, it depends on what you want to be. I thought it was a painter. So did I. Gloria's drawing was pretty good. He painted rather well, too, I always thought. In the first year, I doubt it. Well, I wasn't aware that it took a definite length of time. It is all your life. Well, I suppose I should hide me to some Sylvan Dell. I don't think it would hurt a bit. Well, if you can show me a pure Cobalt blue then the winter sky over the East River any afternoon at four o'clock... Because now you're just being bullheaded. Bullheaded? Me? Bullheaded? Well? Well, what more, teacher? All I've said and all I'm saying is that you can't expect the first crack out of the box. You've got to work, Daisy. Work? Now he's telling me to work. Great heaven, what have I done else but? But differently, with such pains. You're not turning out too much and you know it. Maybe. Maybe anything's too much. Oh, darling. No, don't soften on me. Stay tough. Well, I do believe that's it. I think that's the whole story still hung over from the old job. Pressure, pressure all the time. Still rushing countless sketches through against a magazine's deadline. Anyhow against some deadline. Daisy, darling. Who but you, Tom? Who but you and strangers? If me ever. Daisy. Have you missed me, Daisy? You? Well, I'll tell you about that. See, it's this way. Oh, what are you? It's a lot of nonsense.  We need each other, we too do. You think? Most terribly, I'm convinced of it. There never were such friends as you and me. You know, it's wicked to give that up. To lose anything so precious for no good reason. This is the view of all people for a shabby, low-down question of convention. Fit on it to be considered by shabby, low-down... Oh, well, now, wait a minute. A hundred times I'd have given my eyes to see you, just to talk to you. Well, here I am. Daisy. May I come and see you just now and then? If you like. Just now and then. My sweet dear thing. But no, sweet dear. That belongs to another life years and years and years ago. I see. There are to be rules, are there? One or two? One very definite one. Never secret, never hidden. Why should a friendship be hidden? What's the hide? Well, it does get misunderstood. It can't. It won't or the whole world's rotten. It's been pretty ripe for a long time, Tommy. Tommy? Oh, darling, how grand it is. Kiss the boy, Daisy. No, you've got to go. Why, will it take long? Oh, magnificent. All is before. Yes, except for one thing. What? We're not in love anymore. Now run. Oh, listen. How about lunch tomorrow? Lunch? Yeah. The old place? Oh, I'd love it. One o'clock? Five. And let's dine at John Donovan. Dine? Yes, he's opened a new place on 483. All right. Yes? Unless he Wednesdays the next day. I said I'd drive out and see Pat Atkins. He's been sick again. Oh, poor dear, I didn't know. He's better now. Come with me, Daisy. Oh, Wednesday. Come on. If it's a fine day, we'll take a picnic. What'd you say? Oh, yeah. It's a press all day, but Friday... Oh, well, now, wait a minute. You said now that... I'll bring Hal Foster in about four o'clock on Friday. Will you be here? Oh, I suppose so. Goodbye, then, darling. Till tomorrow. Tomorrow. What about this afternoon? Is that... Yes, what about a cocktail at Jean's place at five o'clock? Oh, the... All right. All right. Goodbye, then. Bye. Sweet dear. Five o'clock. Ten minutes to five. What did you frighten me? Frank, I'm scared. Come here, Daisy. Frank, don't ask any questions. I need your help. I know you can hold your tongue, Frank. Well, what is not my business? It's time. I'm going away. A long way away. I love him, Frank. I love him more than I ever did. Think, Daisy. Wait. Are you wise? I'm going alone. Yes, that is wise. And nobody's to know where I've gone, either. No, of course not. No mess, Frank. It's to avoid while I'm going. But compose yourself, Daisy. Be calm. Oh, I can. Does he love you? I don't know. I don't think he knows. Oh, Frank, he's so slim and brown and sandy. And I'll snap out of it, Daisy. He'll always be like that. I know he will. Even when he's old. The funny way he stands, so sort of stiff with his feet turned out. What they call duck footed there. No, certainly not. It's perfectly natural way to stand. Of course. The fine, strong way to stand. Yes, I know. But don't forget your watercolours. Huh, Mara? Oh. Frank. Maybe if I wait. Maybe I'd better see him once more and explain. Daisy, if you want to go at all, you must go tonight. Yes, I guess you're right. Come along. Come. Yes, now in here. Help me. And look. Yes. You know that painting with the doorstep, the one with the milk bottles, number seven. Yeah, I'll leave you here. Well, will you wrap it up and take it to him for me with my love? Take it? Oh, yes. Yes, you're having cocktails with him at Jeans in one hour. At five o'clock. At five o'clock? Ten minutes to five. And Frank? Yes, darling. When you see him, kiss him for me. What? Kiss him for me? Daisy. Glad to see you. Grab yourself a chair. I'll tell the missus you're here. You're too kind. Huh. Ain't seen you since I've been back. No. Been back a month. Gee, it's swell. Right there, sir. Yeah. Will you have some tea, Bob? No, thank you, my dear. No, thank you. By the way, his birthday is on the 23rd. I think it will be well to have it a surprise party. Have all his old friends. Give him a chance to realize he's outgrown them. And I hope you may be able to persuade him to move into town with me this winter. Must be uncomfortable for you out here. Father, I'd so love being in town with you, but you know how Tom feels. I'm very contented here. Hmm, there's something besides contentment. Of course. How did that, that desperado Regan get back here? Oh, Tom ran into him somewhere. Seems a new job didn't pan out. Regan was ill. So Tom asked if he might bring him back. I said he might. Well, why not just give him something, anything to get rid of him? Don't worry about it, Father. I'll work it out somehow. I have the greatest confidence in you right here. Thank you. Well, I guess I must be getting back to town. Goodbye. Goodbye. Operator? Long distance? I want to get the number of Miss Daisy Sage in New York. Yeah? Just a minute. Connecticut calling you. This is Miss Sage. Oh, yes, Miss Sage. Allow me to introduce myself. I am Mrs. Thomas Collier. Mrs. Thomas Collier? I'm so sorry we haven't met. Oh, isn't it a shame? All of Tom's friends here about us are so regretted not knowing you.  You possibly remember it's his birthday. Well, I know. I, uh... We'd so love having you and Miss Schmidt and Mr. Fisk for the party. And if possible, spend the night. The 23rd? Oh, now, isn't that too bad? Oh, I'm terribly sorry, but I just couldn't possibly make it on the 23rd. Oh, I'm frightfully disappointed. We must try again sometime. Soon. Yes. Goodbye. Now, what was that? What? Mrs. Thomas. Thomas, mind you, Collier. Wants to know if I won't surprise her, surprise Tom on his birthday and spend the night with him in the country. She's going to ask you and Frank, too. And what did you say? Well, you heard me, didn't you? Look, Daisy, ever since your trip to Nova Scotia made Tom feel that you don't want to see him. And so he's cut himself off from... well, from all of us. He's only trying to do what he thinks you'll wish. Well, I don't propose... Mrs. Thomas Collier invited me down there for some very good reason of her own. Well, don't take it out on Tom. I think it'll do him a lot of good. He needs it. He needs us. Well, if he's so weak... Oh, he isn't. Just be wilderness. If he could get back just now and then with the right people, it might help him get a decent point of view again. Oh, Joe, I love that boy. With all my heart. Then don't go. I would like to find out if something I think is true... is true. I certainly would. I look up the number for you, Miss Sage. Oh, thank you so much, Mr. Fisk. I think that by making a tremendous effort, I may be able to recall it. Long distance, please. How about some backgammon? Oh, fine. Great. No thanks. Yes, thanks. The boss has got you reading this new book. Uh-huh. Forget it. Join the party. You might get some laughs. Oh, it's a nice party. Not like we used to have, though. I don't know hardly anybody here. Don't you read? Oh, read. Why don't you get Tom to introduce you? I know very little about music, but I know what I like. That's for the boss. Oh, sir. We're so anxious to hear you play, Miss Schmidt. I, uh, I'm sure you're better than the radio. But I didn't bring my cello.  Perhaps we could get one. She's used to her own fiddle. Yes, but is there any differ? Yes, I suppose there is. Yeah. Look what baby brought you. Indeed. He devastates me. It's a slow fight, Tom. Right, sir. The windows be placed, sir. How does it feel to be 32, baby? A very satisfactory. This is awful, Crepe. What? This rotten egg about to be laid by the Bantam press. Yeah, I know. But it'll make money. Is that all he ever thinks about nowadays? Yeah, apparently so. I have an idea. He thinks he's doing me a favor, publishing my book. Oh, he doesn't. He couldn't. Well, he kind of gave us the works at dinner. We'd rather gathered we didn't approve of him. We don't. Got to do something about it, Joe. Yeah, but he kind of hinted that he might hook up with those pirates, Williamson Warren. Oh, no. Yes. Why do you suppose she asked us out here anyway? Just to prove we don't belong? Oh, she is not bad sort. You know, I had quite a long talk with her tonight. She seems like a very nice, attractive woman. So did the Lila. Yeah, so did the... We were wondering where you were. Hello there, Mr. Fisk. I suppose you've made a good plot tonight. A plot? Did I make any plots tonight? Oh, no, not so far as I know. Well, I mean for your new novel. Oh, yes. Oh, I know you write her men. I bet you're going to use us all for characters. Oh, that's a very good idea. Thanks. Come on, everyone's playing games in the dining room. Oh, I'm still reading this thing. Isn't it too divine? It's going to be a sensation. I'm practically a collaborator, aren't I, Tom? Yes, Grace is my reaction agent. She submits to tests. I love to.  Um, probably go and play backgammon, Mr. Fisk. Oh, yes, I'd love to. Well, how are you getting on with the book? Look, is this on the Band-Am's new list you told me to wait for? Don't you like it? Well, it seems awfully... bright. Well, bright things seem to sell. Look at those great publishers, Williamson Warren. They sell millions of copies... in drug stores. What difference does it make? Where do they sell them? None. Except... if you want to keep your integrity, you... you can't go in for mass production, can you?  Can you? Well, don't let's argue about that. Oh, why not? Daisy, listen, I... I want to... Never mind, never mind. I just shouldn't have said anything at all until I've read it through. That book will make money. Money? Is that so awfully important? I haven't got any, but you know, I feel... I feel quite all right. You're not a married man. No. No, I suppose that does make a difference. Well, Daisy, please read the thing through and give me your opinion. I... I'm not quite sure about it. You will, won't you? Oh, yes, Tom. And... and just bear in mind that, uh... well, you can't please everybody. Why did she come? Who? That woman. Why thought you asked her? First she said she couldn't and then she telephoned back she would. Well... Oh, I'm not the least bit jealous anymore. In fact, I've inclined to like her. That's big of you, see. I suppose that Joe's one of hers, too. How do you mean? Oh, sweet innocent. No, how's that? I should think you'd know by now that she was just a promiscuous little... Oh, well.  You're pretty cruel one, too. Not at all. In fact, I don't see why Tom and she shouldn't be just as good friends as... well, as you and I are. Their history is a little different. Why, don't you like our history? What, the reserved? Trifle uneventful, don't you think? Or shall we simply call it lacking in excitement? You've been so strange lately. So remote. I wasn't aware of it. Refusing to help us sell Tom's press to Williamson Warren. But Tom... Tom doesn't want to be helped. I do. Good heavens, darling. I've told you a dozen times I'm counsel for them. So they do exactly as you tell them. Hang it all, see. Tom doesn't want to sell the bandit. Tom doesn't know what he wants.  Well, you know, there's a thing called legal ethics. There's a thing called friendship. Owen, lacking in excitement, you said. For you? For you, I meant. And I suppose you're the judge of that, too. Well, I don't know who else. And, of course, you couldn't possibly be wrong. Could I? Then I'm not a human being at all. Of course. See. See. You will do this one thing for me. Just one word to Williamson Warren. Yes. You darling. Oh, Miss Sage. Owen and I have been discussing something that might interest you. He's promised to use his influence to have Williamson Warren take over the bandit press. Isn't that splendid? Did Tom... Is it all settled? Owen's arranged it. You see, he's their lawyer. Well, if there's any credit due, I'm sure it's Cecilia's. Oh, yes, I'm sure it is. Will you excuse me? I was just looking for Miss Schmidt. Frank, Joe. Look, do you mind going in tonight? But why, Daisy? We were supposed to spend the night. Yes, I know we were, but I've just got to get out of this house. Oh, but Daisy... No. We are going. Get your things together. Okay. Oh, shame, Jane. Just when the party's getting good. I'm so sorry, Mrs. Collier. It just can't be helped. Are you ready, Joe? Yes. Goodbye. Thank you very much. Goodbye, Tom. Goodbye. I must say your leaving seems very strange. We've so loved having you. You were very kind to us. Goodbye, Tom. Goodbye, Mrs. Collier. Goodbye. Come again when you can really stay. Thank you. I'll see you about the car. Well, all so solemn. Sorry you don't like my friends. They are, however. Sorry you don't like the book I'm publishing. Tom, I pity you with all my heart. Pity me? What are you talking about? I came to find out and I found out. Now I'm going. Found out what? Pity me why? Do you mind? Daisy, give us a kiss, Daisy. Hey, Daisy. Hurry up or we'll miss the train. Come on. Here's your coat. Get in. You must give us a ring sometime, Tom. Right. I'll wait for you outside. Goodbye, Tom. Once I wouldn't say it, would I? Once you wouldn't. Well... Goodbye. This time you do. Goodbye. Good night, my dear. Had a lovely time. Good night, Tom. Why you declined to spend the winter in town with your father? He's what? I simply wish to be disagreeable. That isn't true. Oh, come on, see, now let's forget it. As if that were so easy. And I suppose you refuse to sell the press, even if Williamson wore and are willing to pay twice what it's worth. I don't know. Can't we talk about something else? Tonight. I'm afraid not. You're frightfully late, darling. I stopped at the Bantam. What made you do that, silly? I don't know. I just wanted to think. The mind of the vision of millions and millions of cheap books. Williamson's recital of the glories of the machine age. So I stopped at the press. Everything went all right, didn't it? Oh, yes, perfect. In fact, it's settled. Not already? Yes, they've signed. All I have to do now is dig up a notary in the village and write my name under theirs. Oh, Tom. Are you pleased? Aren't you? I think something's happened to my nervous system. I feel awfully light. Of course. You're famished, darling. Come and eat. Would you like to eat in my sitting room? All right. I'll call Regan. See? Yes, dear. I think it's time we had a child or two, see? We'll talk about that. We must. I thought it would be so cozy us dining here. It's a matter. Funny. You know, lighted this way. It reminds me of someplace. What place? I don't know. Champagne, is it? I thought you'd feel like celebrating. Well, well.  The little more and how much it is. Fill him, Mr. Regan. Infinite riches in a little room. You've got the quotes badly. Little lamb who made thee. Regan, thus thou know who made thee. What is it it reminds me of? And a little more, old son. The discreet withdrawal. I've seen that before, too. I know the Florentine. A private room at the Florentine. What's that? That's a sort of hotel. Run by a woman called Flora Conover. Sounds wicked. It used to be the best place in London. Place? What sort of place? Twenty guineas. Twenty guineas? On the mantelpiece. What are you talking about? In advance, at that. Rather expensive, wasn't it? Well, one went to Flores to celebrate, and the food was good, the waiter discreet, the wine excellent, the lady... most artful. I don't care to hear about it, thank you. See, your eyes are so bright. Ah, eat you. You're seeing things. See? Yes, dear. You know, a little love is no love. Meaning what, precisely? It wasn't necessary to lock your door against me last night. But I didn't. I mean, not against... Then why? Tell me instantly why it was. Is that an order? Tell me. You mean, why I didn't want you near me? Yes. You've been so consistently disagreeable, that's all. About what? Wanting Regan back? That's one thing. What else then? Your father, cheaply. Ah. What are you going to do about your birthday check, Tom? Well, oh, that. Well, I don't know whether to send it back, or just not to cash it. Of course, you simply can't allow yourself to show any graciousness toward him. No. There's a way of telling you how pleased with you he is.  What? I can't believe it. There it is. There isn't that much money in the world. In father's world, there is. He fears he can afford it to get us to come live with him. Of course, I can't understand your attitude about that, either. Can't you see? No. He knows how inconvenient it is here in the winter. And having that great, huge, lovely house in town is perfectly sweet and natural of him, to ask. Well, to ask. Yes, you, to preside night after night at his deadly dinners. Me, to listen eternally to his delfigure advice on what to do and how to live. To give up what little integrity I have left, and short to allow him to own us. Of course, he's willing to pay. He always is. How you can be so hard about him, I don't know. My way of thinking of a person... Oh, let's drop it, C. Very well. We shall. Now you've gone from me again. Not you, care. Oh, C, my lovely C, where are you? What's become of you? The thing you call your integrity. That's the word. See, it's no use talking. This is what you call being disagreeable, I suppose. Yes, very. But how to be otherwise when... Possibly by being the fine, kind, generous man you ought to be. Accept the check with thanks and go and live with him. It's only for a few months. I think to refuse his present would be extremely bad manners. Just about in a class with those of your little ex-sweetheart. Oh, I'm sorry. I didn't mean... Never mind. C, suppose I should do as you say about father. Oh, Tom.  Would you like me better? Much. How much? Oh, very much. No locked doors anymore? Not one ever. Sounds most inviting. Does it? And suddenly I'm beginning to see with an awful clearness. What?  So you are going to be nice again? You'll see. Oh, I want so to feel, I don't know, together again as we used to. You're very pretty, you know. Oh, thank you, sir. Very exciting, too. I don't know whether it's you or the wine speaking. Or me, me through the wine. Shall we have a little more? I think so. It's a party, then. It's a party. We'll have another small bottle. There's some here. Sometimes you're so thrilling, Tom. You think? We shouldn't. You know we shouldn't. But we seem to be. All at once. I feel terribly naughty, somehow.  So nice of you to think so, sir. So very attractive. I like to be attractive. So very alluring. There, that's enough.  Your lips drop honeycomb.  Now what are you quoting? Ah, the discrete waiter returns. Come in. Give the ladies some, waiter. You can leave the bottle on the table. That'll be all. To the pleasant ways of life. Such pleasant ways. It's good, isn't it? So good. I'm getting to feel it a little. Well, that's what it's for, eh? It must be. Champagne, the friend of lovers. No. Not yet. Artful child. You think? Lovely alluring thing. I like you too, Mel. It's pleasant here, isn't it? So pleasant. Do you not take any? No. It makes me see almost too clearly. Oh, take a little more. And everything will get so, so lovely and vague. In the way I feel now. A good feeling, is it? Delicious. Oh, Tom. One last toast. Do we dare? But to what? What to? You name it. To love. And, darling? Yes.  You'll see. I knew you would. I'm so happy. I want you close to me. Don't be long. See here, Red, I... Never mind. All I mean is, well, I'm out for good this time. Why? I just don't like it here, that's all. When you want to go. As soon as I can. Tonight then? That's all right with me. I'm packed. Wait downstairs. What a fountain pen. Don't let me forget to return it. On the mantelpiece.  Go and get in the car. I can walk to the train, all right? Bring my hat and coat. Will you bring my hat and coat, please? What's the idea? Light, please. No, then. I can walk, I tell you. Not at all, we'll drive in. We will. To your... my wife, I said.


We will continue our discussion on the theory of game and particular its application on economic analysis. So, last class if you remember we discussed about different types of game and will pick up specifically few types of game which is more applicability in the case of the economic analysis. So, in that context the first discussion will be on the market entry game and here we will analyze that how the when the firm plans to enter into the market generally how he uses the game theory and from the other point of view the existing firms who those who are there in the market how they use game theory to create a barrier to entry or to if the firm is coming into the market how they are going to maximize the profit. So, game of entry of potential firm in an industry which is already a monopoly firm. So, we will take a case where the existing industry set up is there is only one monopoly firm and there is a potential firm who is trying to enter into the market and compete with the monopolist firm to maximize the profit or get the market share. The incumbent has to decide whether to enter the market or stay out. So, incumbent has two choices or the two options at this point of time whether he has to enter the market or he will stay out he will not enter into the market and in the other hand the existing firm typically the monopolist firm has also two options whether to collude if the firm is entering into the market whether to collude with the entrant firm or whether to fight with the entrant firm. So, there are four options that is there with the taking to the incumbent firm of the existing firm. For the incumbent firm the options are whether to enter into the market or stay out and to existing firm whether to whether to fight or collude with the new entrant in the market. So, on that basis now we will try to do a payoff matrix for on the basis of the options available to the existing firm and also to the incumbent firm. So, to draw this payoff matrix we need the payoff for the all these four options. So, here we will take this the case of the entrant and the two options are either to enter or to stay out. This is for the incumbent and what is the options for them collude or fight. Now, the outcome is in term of market share. So, how we can construct the payoff matrix? Suppose the entrant is deciding to enter and the incumbent firm is collude once the new entrant comes the payoff will be 40 and 50 the market share will be 40 for entrant and 50 for the monopolist firm. If the entrant decides to stay out obviously his outcome is 0 he is not going to any market share and the incumbent firm they are going to get the they are going to get 100. So, let us change this is the existing monopolist. Now, if the entrant decides to fight and the existing monopolist entrant decide to enter and the existing monopoly decide to fight in that case if you look at then we take into a case where maybe we can get minus 10 for the payoff and 0 for the monopolist. Why it is minus 10 and why it is 0? Because if the entrant is entering and the existing monopolist is fighting maybe no one is getting a market share and it goes to goes to someone else we can do it may be 19. Then if entrant is entering stay out and obviously there is no choice this fight. So, this comes again to 0 and 100. Now, the basic purpose of doing a payoff matrix is to evaluate the options when the firm is trying to enter into the market basically these evaluating options that if he is entering what will be the market share what will be the outcome and if he is not entering what will be the market share and what will be the outcome. Similarly, the monopolist has two options if the entrant is getting into the market what should be the what should he do whether he should collude whether he should fight. So, one payoff will come if the entrant comes into market and if he is going to fight what should be the market share and if the entrant is entering to the market if he is going to collude what should be the market share. So, collude fight two options for monopolist enter into the market stay out from the market two options for the new firm. So, in this case we get four payoff in term of poor market share and among them now they will decides that whether it is a dominant what should be the dominant strategy for both of them whether they are getting a Nash equilibrium or whether they are getting two Nash equilibrium if there is a absence of the dominant strategy in both these cases. Now, in this case what should be the strategy of the rational monopolist because we assume that the monopolist has two rational and what should be the strategy of the rational monopolist and where the Nash equilibrium generally occurs. So, Nash equilibrium occurs when entrants enter and the increment firm collude with it. So, in this case if you remember your payoff matrix that is the case where both of them they are getting a market share. In all these three options either of them is getting a 0 or them getting a minus, but in this case when if the new firm is entering into the market and existing firm colluding with it then that is whatever the market share is getting that is more preferable for both from the monopolist point of view and the new firm point of view if they are acting rational. So, when it comes to the Nash equilibrium Nash equilibrium typically occurs when the entrant enters and the increment firm collude with it because this is the point actually where both of them they are getting some amount of the market share. So, before going to this this is what this is which this is also a types of game and we will see what is the game tree over here because this is also a sequential game and in this case sequential game how I will see how the game tree looks like. So, this is for the entrant it has two options one is enter another is stay out if it is enter then the existing monopolist has two options one is collude another is fight. So, in that case we get two columns of our monopoly both for the entrant and for the monopoly. So, in this case we get 40 50. So, if entrant enter monopolist collude with it we get a market share we get a payoff matrix 40 50 where the share of entrant is 40 where the share of the monopolist is 50. If entrant enter monopolist fight then we get a share of minus 10 for entrant because cannot part cannot compete with the monopolist and 0 for the monopolist because the market share is not going to come to it is fighting with the existing market or same thing can be analyzed in a different version also because it is getting a market share of 90 whereas the other entrant is getting a market share of 10. Then stay out then what is the option for the monopolist it is again collude it is again fight again we will get a payoff matrix for both the entrant and the monopolist and here we get the payoff as 0 100 0 100 because if the entrant is staying out obviously the market share is 0 whether and the second part is not at all relevant because if it is staying out the question is not coming whether monopoly should collude or monopoly should fight. So, basically and the market share of entrant will be 0 and whether and the all these cases of market share of the monopolist will be 100. So, this is the case of a sequential game where the decision of one firm is always dependent on what is the decision of the other firms and in this case the decision is followed from whatever the market share what is the end outcome here the end outcome is to maximize the market share dependent on what is the outcome with respect to its decision points and also looking at to that what is the rival's action like if the entrant is trying to get into the market now what should be the what should be the decision point of the monopolist. So, the entrant will evaluate option in term of two things that whether the monopolist is going to collude or whether the monopolist is going to fight similarly the monopolist is going to take the options that what would be the market share if he is going to fight and if he is going to collude on that basis he will decide what is the dominant strategy for him. So, typically in case of a market entry situation in case of a situation when the market is trying to enter into the market where there is a monopolist firm generally this game theory is relevant typically a sequential game theory where it gives us the sequence that what should happen if one firm behaves in this direction then the other firms behave in the following action. Then we will talk about the application of game theory in case of a cornered model. So, if you remember we discussed this cornered model in case of a non-collusive oligopoly and cornered models talks about a situation that where there are two firms they are sharing the market and they always assume that the whatever the previous output plan for the other firm that has to be following the revised period also, but practically it leads to a situation where they reach to a suboptimal solution or we can say top part of the market is still untapped by both of the geopolitist firm because they always assume that the output plan whatever followed by the firm in the previous time period that has to that is going to be continued. So, the same thing we will see that how this game theory is applied to a cornered model if both the firms they fight with each other then they earn the geopolit profit because they share the market and they earn a geopolit profit, but if they form a cartel each firm earns a greater profit, but given the structure of the game and the player's rivalry they end up in a suboptimal equilibrium. So, cornered model if you look at always they feel that the other one is going to share take the half of the market. So, his decision point is on the basis of that the other firm is going to take half. So, let me take another half and in that process when the iteration takes place finally, in the revised period revised period and then the nth period if you look at the one third is only taken care of and rest if you look at rest of the rest of the market is not taken care of neither of this firm, but the other option is that if they form a cartel if they cooperate with each other then then ideally they can decide on the basis of their productive capacity or on the basis of their cost function. They can decide that who has to share how much of the market or who has to supply how much share of the market and on that basis they can tap the full market and they can reach to into a optimal equilibrium, but practically the structure of the game is such the cornered model is such that there is a rivalry and they always believe that the output plan is not going to revise by the other player and that is why they go on consider the same output plan and they accordingly they devise their or price and output plan and that is why they lead to a sub optimal equilibrium rather than optimal equilibrium. So, here how we can conclude we can conclude that even if the cooperation is profitable still the firms they are not cooperating with each other rather they are competing with each other and going into a sub optimal equilibrium rather than a optimal equilibrium. Then we will see the Stackelberg model. So, if you remember in case of Stackelberg model it is a leader follower model generally one follow generally one take a lead and the other one is follow. So, we will see that generally the sequential kind sequential types of game is used in case of the Stackelberg model. So, sequential move game is different from the cornered game and typically in case of there is also a difference in case of a cornered model and Stackelberg model even if Stackelberg model is the extension of the cornered model in case of Stackelberg model the significant feature is that one firm acts as the leader and the other firms act as the follower. So, sequential move game is that is how it is different from the cornered game. Here one firm known as the leader chooses his output second firm chooses after observing the first quantity of the output. So, one is as the leader firm second one is the follower firm one firm generally chooses this is the output I am going to produce and the second firm after looking at or after observing that what is the output plan for the first firm generally the second firm decide his quantity. So, this is generally known as a follower leader game and here the leader firm always sets a higher quantity of output and earns more profit than the follower firm and by doing or this they get because they have the first mover advantage. Since they are the leader they are the first one to decide what should be the output generally they get a greater advantage in term of the share in market share in term of the profit because they are the first one to decide what is the share of them and this is generally known as the first mover advantage and always in case of a Stackelberg model the leader or leader firm get a first mover advantage because they are the first one to choose the output and in that way they can maximize the market share and they can maximize the profit also. So, in case of Stackelberg model the equilibrium is decided on the basis of the backward induction in the game theory and how we say this is the backward induction in the game theory because this technique first consider the optimal strategy of the player and its best response which takes the move that are last in the game. So, the equilibrium whatever the method is follow generally known as the backward induction in the game theory. So, in the previous case also in the market entry if you look at the decision of decision point is based on that what is the last decision point of the rivals or what is the last decision point of the opponent. So, this is the part of the backward induction in the game theory where the decision is dependent on the what is the previous decision taken by the opponent and this technique first consider the optimal strategy of the player and its best response with which it takes the move and that is the previous or previous time period that are the last in the game. Here predicting the future action of the last player the second last player proceeds taking the best move. So, in the when it is coming to take above the last player or the predicting about the future action here the second last player proceeds taking the best move and the process continues backward in time determining for each player the best response until the beginning of the game is reached. So, when we identify the best of best what is the best option for each player they go in a backward direction till the time they are reaching the the reaching the beginning of the game because that way they just go on evaluating what is the best response with respect to the previous time period or with respect to the action taken in the previous time period and in that way they decide the optimal strategy. So, in the game theory typically to conclude the game theory we can say in the game theory we discuss about the structure of the game we discuss about what are the assumptions to be taken to use the game theory and then we talked about the types of game and how this game is being used in the case of the economic analysis. So, to sum up we can say that game theory is a tool which is used typically in the economic analysis to understand the group dynamics to understand the group behavior specifically in case of a oligopoly market structure. Then we will start a new topic that is on product pricing because still now we have the understanding that price is decided on the basis of the demand and supply, but there are this is the main basis of demand and supply, but there are many other considerations is taken when we decide the price of the product. So, our next topic will be on product pricing and before deciding the product pricing we will also talk about the kind of price discrimination and then we will go what is the type of product pricing and what is the basis of the product pricing. So, what is the meaning of price if you look at this is the market price this is the value of product, but what price for the seller what price for the buyer. So, if you go in depth it is the price is basically the revenue to the seller because in the end it leads to the revenue to them and for the buyer it is the perceived value of goods and services to them. So, the question here is that what is the right price for a product. So, since price leads different meaning to different kind or different economic agent like it is revenue to the seller and perceived value to the buyers. Now, what is the right price of the product? Right price of the product is one where all economic agent maximize their objectives. Now, who are the economic agents here the buyers price is one where he maximize his utility or may be maximize his consumption for seller when it is maximizing the sales revenue for the supplier it is the maximization of the output and for a firm it is the maximization of the profit because price to him is to maximize the profit to the seller maximizing the sales revenue to the producer maximize the output and to the buyer it is maximize the utility. So, the right price is one which maximize the end objective of all the economic agent in the market or all the economic agent associated with the product. Now, when the firm they need to decide about the price of its product when it is not only when there is selling if they are selling a new product also they need to decide when they are selling the modifier or the improved product or when the seller is entering into the new market or the new market in a typical market segment. So, may be the price has to be decided when the seller is selling a new product or seller is doing some modification or improvement to the initial product or when the seller is entering to the new market or they are entering into the different segment of the existing market. In all these cases there is a value addition to the product whether it is a new product, whether it is a improvement in the existing product or whether the product is entering into the new segment. Since in all these three scenario there is a value addition to the product in all these three cases the producer need to think or the seller needs to think what should be the right price for the product which will give some amount of the profit some amount of the benefit to all the economic agent in the line of their end objectives. So, what is the basic determinant of price we know there are the main determinant of price is demand and supply, but apart from it always linked the price is always linked what is the objective of the firm. If the objective of the firm is to market increase the market share then they are not going to charge a high price they are going to charge a low price whether so that they can tap the market. If the objective of the firm is to maximize the profit then see at that scenario whether the high price or the low price which one will shoot more for the profit maximization. What is the cost of production whether it is a high cost production whether the low cost production if it is high cost production then the price has to be high if it is low cost production the price has to be low because in high cost production if it is low price it is not going to it is not going to maximize the profit by charging that level of price. What should be the what is the market structure if the market structure then the entirely the price is decided by the demand and supply, but if the perfect competitive market structure if it is monopoly then the monopolist is said because he is the price taker firm in the market. If it is monopolistic again or the oligopolist again it depends what is the market power or what is the power of them to set the price on that prices the price will set. What should be the competitor strategy if the price is going to increase or if the price is going to decrease how the rivals or how the opposite opposite or the how the opponent is going to react over here that decides what should be the right kind of price. Then elasticity of demand more elastic is the market there is less flexibility in term of change in the price less elastic at least you can change the price because the quantity is not going to change simultaneously in that proportion because it is a case of the in elastic demand. Similarly, government policy whether it is a regulated market whether it is a unregulated market in case of regulated market any increase in the price or whenever the price is being set by the firm they have to take the concern from the government, but in case of unregulated market at least it is decided by the agents whoever or all it is the firms those who are operating the market what should be the price. So, in that context we will discuss about two kind of pricing one is multi product pricing and second is about the price discrimination discrimination on the basis of the different grounds. We will discuss about two kind of pricing and then we will move into the different types of product pricing. So, we will start with multi product pricing and where multi product pricing is relevant multi product pricing is relevant because most modern firms they produce variety of product rather than single product and if you look at you talk you take the case of your PNG proctor and gamble or you take the case of your Hindustan liver their product is not single their other they produce a multi product and in this case if it is a multi product how the pricing has to be done and why the challenge is there for the pricing because demand for the various products are separable but cost are not quite divisible product wise like for the in the one assembly line if the intermediate good is one product and the final good is one product obviously it is difficult to make a division that what is the product what is the cost associated with the intermediate product and what is the cost associated with the final product and that is why in case of a multi product pricing the demand is separable but the cost is not separable so the cost has to be or where the price has to be decided on the basis of the combined cost for both the product so in this case we get a separated demand function and there is only one cost function so profit maximizing price will be given by a point at which the combined marginal revenue for the products equals to the marginal cost or we can say that the marginal revenue of each of this product equal to the combined marginal cost so we will just take a graphical explanation to understand this identification or the deriving the profit maximizing price and output in case of a multi product pricing so we have if it is two product then we have two demand function and corresponding marginal revenue function then we have P2 MR2 this is the marginal cost then we will get a combined marginal revenue curve that is MR1 and MR2 this is CMR and on that basis we will look at the price and suppose this price is E2 on this basis or this is the point E2 on this basis both the firms they are going to charge the price so this is for P2 that is Q2 this is P2 and similarly for MR1 this is price and this is the quantity so in case of if you look at individually you can do it by making it with MR1 with MC and correspondingly we can get price 1 or MR2 is equal to MC and correspondingly we can get price 2 but since this is the case of a multi product pricing we have this combined marginal function and on that basis we are getting two price that is the we are getting the point E2 on that basis the price is decided that is P2 for the firm 2 and producing the P2 is for the product 2 and producing Q2 level of output and P1 is for product 1 producing Q1 level of output then the second we will say the price discrimination and price discrimination if you look at this is a significant feature of the monopolist firm and why we call it discrimination we call it discrimination because the monopolist charges different prices to the different consumer in different market in different time period exercising their discretion power and that is why this is known as the price discrimination by the monopolist. Now to put it in a definition what is price discrimination it is the act of charging different prices to different consumer in order to capture the consumer surplus so the motivation is to capture the consumer surplus and they do this they capture this consumer surplus by charging different prices to the different consumer. Now what is the basis or what is the prerequisite for this price discrimination in which case monopolist can practice a price discrimination the firm must have the market power and some control over the price that is present in the monopolist market and that is why they practice the monopoly they practice the price discrimination. The firm must be able to distinguish between consumers market on the basis of the elasticity of demand so there should be division between the consumer there should be division between the market on the basis of the elasticity of demand. The firm must be able to prevent resale market must be separable it is not that you can buy in the market in you can buy in one market at the lower price and sell it in the other market so resale to be control otherwise it is not going to be profitable or they cannot practice the price discrimination. So this price discrimination can be possible owing to consumer peculiarity and how this consumer peculiarity come here suppose in any situation if consumer A is unaware of the fact that he is paying a higher price as compared to B or sometimes the price discrimination is so small it is so it is negligible and that is why the monopoly generally do a price discrimination because consumer is just indifferent about the small change in the price a small change in the price between two market or two consumer in the first case when consumer A is the unaware of the fact that consumer pay is paying a lower price so on that basis we can discuss about three type of price discrimination that is first degree, second degree and third degree so when we talk about the consumer peculiarity that is more significant in case of may be third degree and that is why this consumer peculiarity comes up under the part of the third degree price discrimination but here one more consumer peculiarity comes here is when one consumer typically if you remember your Babylon effect in case of consumer behavior when price increases people they think that the product quality has improved and that is why they pay it. In this case also how this price discrimination is possible when the even if the consumer knows that he is paying a higher price but if he feels that he is getting a product which is a higher quality of the other products still the price discrimination is possible. So, price discrimination is possible when the consumer is not aware of the fact that the other one is paying a lower price or consumer feels that if he is paying a higher price there is a quality attached to it and in the third case the the price difference is so minute it is so negligible that generally consumer ignore this. Similarly the discrimination also owing to owing to the nature of the group and sometimes the discrimination also owing to the distance and the front barrier. So, these are the prerequisite for the different type of price discrimination and as we discussed there are three types of price discrimination first degree price discrimination second degree price discrimination and third degree price discrimination. We will start with the discussion with the first degree price discrimination. So, in the first degree price discrimination the monopolies charges each consumer their maximum willingness to pay whatever they are willing to pay it is the monopolies generally charges the price which comes under the maximum and generally in the first degree price discrimination eliminates consumer surplus because each consumer pays the maximum amount whatever they are willing to pay and also it is a charges the maximum possible price for each unit of output. So, first degree price discrimination generally eliminates the dead weight loss because monopolies are able to provide goods more to the consumer. So, we will just take the graphical examples to understand what is the how the generally monopolies by practicing the first degree price discrimination take out all the consumer surplus and also even there is no dead weight loss because dead weight loss comes when the price increases and quantity decreases but here at that price the producer is ready to supply whatever the goods come and that is why there is no dead weight loss the entire consumer surplus goes into the account of the producer surplus. So, if we consider this as equal to m c is equal to a c this is our demand function. So, how we get the consumer surplus this is the market price if for this one for q 1 if the consumer is ready to pay this much the monopolist will charge a price p 1 because this is the maximum willingness of the consumer to pay for the amount q 1. Similarly, if for q 2 if the consumer is ready to pay p 2 the monopolist will charge a price p 2. Similarly, for this amount q 3 if the monopoly if the consumer is ready to p 3 or the willingness to pay p 3 generally this is the market price. So, in this case ideally when the consumer is ready to p 1 but the market price is p 1 p this is the amount of consumer surplus it gets if for q 2 if the consumer is ready to p 2 but generally he get pay only p which is the market price this is the amount of the consumer surplus. And similarly for p 3 but in this case since the monopolist is charging on the basis of willingness to pay the entire consumer surplus is goes to the account monopolist and there is no consumer surplus for the there is no consumer surplus for the typically the consumers those who are buying this product. Next we will see so in one case we know that the consumer there is the entire consumer surplus is taken by the monopolist and secondly we will see how there is no dead weight loss because the entire dead weight loss is also goes with the consumer surplus. In this case we will take this is marginal cost is equal to supply and here we get the demand curve here we get the marginal revenue curve on the basis of the marginal revenue and marginal cost this is the price to be followed and this is the monopoly price. On the basis of the demand and supply we can say this is the competitive price here this is the competitive output this is the monopoly output now what is the here we will say this area is A this area is B this area is D this area is C and this area is E now here if you look at what is the consumer surplus with the monopoly if in a normal market if the monopolist is not practicing the monopolist is not practicing price discrimination what is the consumer surplus with the monopoly that is the area A this is the consumer surplus because the monopolist is not charging the price discrimination but if and what is the producer surplus we are assuming the fact that there is no discrimination at this point of time the monopolist is not doing the price discrimination if monopolist is not doing the price discrimination this is the total consumer surplus and what is the producer surplus producer surplus is the area B plus D this is the total producer surplus consumer surplus is A producer surplus is B plus D what is the dead weight loss because if both consumer surplus is producer surplus is there this is not the competitive price this is the monopolist price there is some amount of the dead weight loss and what is the dead weight loss dead weight loss is C plus A all these consumer surplus producer surplus dead weight loss assuming the fact that this is a monopoly market structure where the price discrimination is not being practiced now if the first degree price discrimination is going to practice if the first degree price discrimination is going to practice now we will see whether there is consumer surplus at all if entire and second is whether there is a dead weight loss or not so looking at this now if you say if there is discrimination now now what is the discrimination discrimination is first degree if the discrimination is first degree we will see what is consumer surplus what is producer surplus and what is dead weight loss so consumer surplus with first degree it has to be 0 because the monopoly will charge a price on the basis of the willingness to pay that is and what is the producer surplus producer surplus dead weight loss is also 0 because the entire amount suppose there is this price is this much if they are going on going on charge the price which is a maximum willingness to pay and this is the PC on that basis QC is come now this is the dead weight loss if the quantity demanded decreases because of increase in the price but since monopoly has the capacity to produce the supply whatever may be the price this C plus C what is dead weight loss this also goes into the account of the producer surplus and that is why we get the producer surplus which is A plus B plus C plus D plus E there is no dead weight loss and there is no consumer surplus so in case of first degree price discrimination the monopoly charge a price on the basis of the maximum willingness to pay for the maximum willingness to pay of the consumer and in that case they capture entire consumer surplus and even there is no dead weight loss because the entire surplus goes into the producer surplus so this is the highest kind of degree of price discrimination but if you look at also in the practice it is difficult to follow because you need to know what is the willingness of the different market then we will talk about the second degree price discrimination and what is the focus of the second degree price discrimination or what is the practice being followed in case of the second degree price discrimination here instead of setting the different prices for each unit pricing is done on the basis of the quantities of output purchased by the individual consumer so here the discrimination is on not on the basis of the price rather it is on the basis of the quantity and typical example of the second degree price discrimination is meter services like electricity and telephone because if you know the first few calls typically in a landline if you look at the first few calls or even for the mobile services also you will find may be 200 minutes is free or 20 calls are free or at least 10 sms are free that comes with the plan and if you go beyond then then you charge a different you get a you have to pay different price similar in case of electricity also 0 to 200 unit there is one tariff rate 200 unit to 500 unit there is one more tariff rate 500 unit to 700 unit there is one more tariff rate so if you look at the charges are different on the charges are different on the basis of the different in the price so if it is the usage is between this unit to this unit this has to be the price so here the discrimination is not on the basis of the price rather the discrimination on the basis of usage or the discrimination on the basis of the quantity so we will take the graphical explanation to the second degree price discrimination so suppose we take this as q 1 we take this as q 2 so here we get a price that is p 1 then we get a price p 2 then we get a price p 3 ok so for here if you look at for q 1 from 0 to q 1 the price being followed is p 1 from q 1 to q 2 the price being followed is p 2 and beyond this q 2 any level of output beyond this beyond q 2 we followed a price that is p 3 so here it is not on the basis of p 1 we are identifying q 1 or p 2 we are identifying q 2 the basis of up to 0 to q 1 amount of output price has to be p 1 q 1 to q 2 price has to be p 2 and q 2 beyond q 2 price has to be p 3 so the price discrimination here is on the basis of the here is on the basis of the quantity rather than the price then we will talk about the third degree price discrimination which is more common and structure and it separates the market on the basis of the price elasticity of demand and here the segmentation is based on geographic separation of markets nature of use and personal characteristic of the consumer so the market is market is divided on the basis of the elasticity of demand like less elastic market more elastic market and on that basis price is generally being followed and secondly the segmentation is on the basis of the sometimes the geographic separation like if you look at the typically books it is Indian edition foreign edition international edition what is the nature of use on the basis of the personal characteristic of also consumer so on that basis if you look at the two kind of market and in the two kind of market the monopolist will charge a different price and how they will charge different prices because in the elastic market any small change in the price will lead to a greater change in the quantity demanded so they will always charge a lower price to get more quantity change in the quantity demanded in the elastic market and there the profit maximization policy is to less price quantity demanded and in case of the inelastic market they will charge a higher price because the consumer they are less responsive to change in the price so even if the monopolist is charging a higher price still there is no much decrease in the quantity demanded so they will always charge a higher price in case of the inelastic demand and lower price in case of elastic demand to make this price discrimination which more effective and make more profitable so we will check this how this third degree price discrimination can be followed so here this is market one so D one marginal revenue one this is market two and this is the total market now here it is the inelastic market we can check this from the shape of the demand curve taking together we get a demand curve and also get a marginal revenue curve so this is demand curve 40 this is marginal revenue of curve 40 that is the total and here this we get the as the on the basis of the marginal cost we get this is the total output of the total sale or the total output of the market now how this has to be get divided between both the market so correspondingly we will take the marginal cost from here taking the marginal revenue and marginal cost the price is decided in the second market that is P two and taking the same cost function will decide the price in case of the first market that is P one so by following this P one in the market one Q one has to be produce and here Q t has to be producer to be sold so Q one has to be sold in market one Q two has to be sold in the market two the price of one is higher than price of two because this the case of the inelastic market and this the case of the third degree price discrimination the monopolist charge different prices on the different market and markets are segmented on the basis of the elasticity of demand so if it is more elastic generally the firm charges a lower price and if it is high elastic then the firm charges a higher price then we will take a numerical to understand this price discrimination how this prices are being discriminated on the basis of the price are discriminated on the basis of the third degree price discrimination when market is differentiated on the basis of the elasticity of demand now what the monopolist they get out of this third degree price discrimination in the first case they are capturing the consumer surplus in case of the first degree price discrimination in the second case it is the middle service so on the basis of the price discrimination trying to charge a higher price and on that basis they are getting the profit in case of third degree then generally they are segregated on the basis of the elasticity of demand and they knows that the when the market is elastic they can charge a lower price because the consumer they are more sensitive in the elastic market and that is why if you are charging a higher price there will be significant reduction in the case of a elastic market and they charge a higher price in the elastic market because if they are charging a higher price still there is no much difference in the quantity demanded or no much decrease in the quantity demanded and by that they can maximize the profit. So, we will continue our discussion on price discrimination the typically the third degree price discrimination and international price discrimination in the next session and along with that also we will talk about pricing how what is the basis of pricing and what are the different type of pricing product pricing in the next session.


How can I hang heavy art resin pieces? If your work is large or if you're just using a lot of art resin, your piece is going to be pretty heavy. So you can't use a normal picture frame wire. Instead, we recommend using an airline cable, which you can find at any hardware store. Another method that we highly recommend is by using two blocks of wood that have complimentary 45-degree angles cut into them. One block of wood is installed on the wall securely, and the other block of wood is installed onto the painting, and when that painting is hung, the 45-degree angles meet, and that thing is going nowhere.


100 to 125 schools a year, reaching from 60 to about 75,000 kids a year. Okay, well that there is almost like, I'll tell you this, like the for my, you know, I coach swimming and water polo in Houston, that's my kind of niche. And, you know, what I've been trying to tell people online and with the YouTube videos is like, you need to grab that small younger base so you can build up your program.  That's another huge one, right, is like, you go to a middle school, you go reach out to that athletic director while you're there, because you have an excuse to be there. And that's like, you're not just on campus randomly as like a guy like myself. It's like you are there for another purpose and you just also happen to do this, right? That would be a huge huge in I personally use like a thing called Peach Jar to access schools. So that's how I'm accessing schools is just Peach Jar allows you to like make a flyer. You send that and it'll post in the like, it'll send it to all the parents and they'll send like your flyer to all the parents to their emails as long as I signed up and it's a public school thing and the parents and like it sits on a board and the parents can go look at it. And I was looking at my stats the other day, like the impressions it made, it's pretty good.  So I'm going to target that middle school, you can send it just to that middle school or the middle schools that feed that high school. So the parents will get it, right?  And you said it's called Peach Jar that you use? Peach, like Georgia Peach, yeah, Peach Jar. Yeah, it's just I've used in the past that it just, and when I asked my, you know, we've got about 50 or 60 people that play with our art pool club and they asked them, hey, you know, how'd you find out about us? Like, oh, the, you know, I'm in Fort Bend, like, oh, the Fort Bend email popped up and, you know, I just looked on it and you, it lets you to put like clickable items on it. So once they see the flyer in the email, it can take you right to your registration page or it can take you to, you know, you're just your website in general for what you want to do, depending on how you organize it so far. So that's a big help.