Keyword: price discrimination

A Fable of Fruit Vendors (9/7/2009)

Fruit vendors may choose perfect competition or pricing power depending on foot traffic and other locational advantages.

Keywords: cartel, fruit vendors, market structure, perfect competition, price collusion, price discrimination

Airlines in Asia Offer Personalized Prices by Age, Race, Gender (1/23/1999)

Airlines in Asia Offer Personalized Prices by Age, Race, Gender.

Keywords: airfare discounts, airlines, price discrimination

Banks and Others Base Their Service On Their Most Profitable Customers (8/31/1999)

Under intense competition, banks pamper their best customers.

Keywords: banks, competition, deposit, fees, good customers, price discrimination

Border Patrol (2/27/2007)

To enhance profit, businesses often sell non-interoperable versions of the same products in different markets.

Keywords: DVD, movie, Palm Zaire, price discrimination, printer, product cycle, region code, region locks

Capping the Sky (9/11/2007)

Death-postponing cancer drugs command high prices because of the third-party payment health insurance system.

Keywords: cancer drugs, co-payments, drug prices, health insurance, prescription drugs, price cap, price discrimination, third party payment

Competitive Strategy (7/7/2006)

Static efficiency in mature products may be good for consumers in the short run, but dynamic efficiency in innovative products is what drives the economy and elevates consumer welfare in the long run.

Keywords: brand dominance, consumer surplus, dynamic efficiency, economic surplus, innovative products, lock-in effect, market structure, mature products, monopoly, network product, oligopoly, patents, perfect competition, price discrimination, single pricing, standards, static efficiency

DVD or Wait (4/19/2001)

Film companies can increase their revenues by releasing higher-priced DVD's before lower-priced videocassettes.

Keywords: demand elasticity, DVD, movie, price discrimination, revenue maximization, video tape, videocassette

Discriminating Business Sense (3/30/2001)

Club owner increases revenue by charging customers according to their demand elasticity.

Keywords: bar, club, cover charge, demand elasticity, price discount, price discrimination, women

Fare Game (11/9/2001)

The pricing strategy of charging premium prices for business travels and deeply discounted prices for leisure travels has fallen apart amid a slowing economy and fear of on-air terrorist attacks.

Keywords: airfares, airlines, business travel, demand elasticity, leisure travel, price discounting, price discrimination, price elasticity

Flexible Pricing (2/26/2005)

The Internet has made it possible to replace fixed pricing with flexible pricing based on changing supply and demand conditions. Spot pricing will lead to a more efficient market with winners and losers.

Keywords: auctions, commodities, efficiency, exchanges, fixed pricing, flexible pricing, price discrimination, Spot pricing

Get in Where You Fit in (4/3/2003)

Quoting room rates according to the guest's elasticity of demand improves the bottom line when there is surplus capacity.

Keywords: fixed cost, hotel, price discrimination, profit, room rates, Senior discount, surplus capacity, variable cost

Gray Market (11/5/1999)

Gray markets appear when cheaper goods in one market are diverted to compete with more expensive but similar goods in another market.

Keywords: cigarettes., distributors, diversion, diverters, gray market, high-end market, low-end market, parallel imports, price discrimination

Is Imitation a Flattery or a Ripoff? (1/10/2007)

High-end-orientated garment fashion designers leave a lot of money on the table for the knockoff competitors.

Keywords: Armani, copyright, fashion, flattery, high-end market, imitation, knockoff, Kohl's, mass market, piracy, Prada, price discrimination, ripoff, Vera Wang

Mickey Mouse Economics (10/26/2002)

By spreading out large fixed cost over more customers, price discrimination directly increases Disney World's profit.

Keywords: average cost, Disney World, economies of scale, fixed cost, mickey mouse, price discount, price discrimination, profit

Pay What You Want (12/27/2014)

The pay-what-you-want model makes economic sense when it is used as a limited-time promotion and as a loss-leader to increase sale of higher profit-margin related products.

Keywords: download, loss leader, pay-what-you-want, piracy, price discrimination, Radiohead, reservation price, self-image

Pricing and economic surplus (7/7/2006)

Pricing affects how economic surplus is distributed between consumers and producers and thus the incentive and resources to come up with innovative products.

Keywords: commodity, consumer surplus, economic surplus, innovative products, marginal cost, marginal revenue, monopoly, perfect competition, price discrimination, reservation price, single pricing

Profit Maximization Under Natural Monopoly (1/23/2012)

Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.

Keywords: ATC, average total cost, marginal cost, marginal revenue, MC, MR, natural monopoly, price discrimination, profit maximization, regulation, single pricing, total revenue, total willingness to pay, TWP

Profit Maximization Under Natural Monopoly (transcript) (1/29/2012)

Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.