3 days ago by Rags Srinivasan

In any all you can eat pricing model, be it a lunch buffet or at&t iPhone subscription pricing, as long as the total revenue exceeds total costs the business will be making profit regardless of whether they lose money on any single customer. There will always be a distribution of customers based on ...

Iterative Path - iterativepath.wordpress.com · Rank: 132,172 · 7 references

9 days ago by By DANIEL HAMERMESH

Is there price discrimination among iPhone apps that translate between languages?

Freakonomics - freakonomics.blogs.nytimes.com · 2 references

20 days ago by Rob

Well, to the Clinic actually- but my cab driver’s English pronunciation left a little to be desired. I’ve been laid up for the last couple of days with Achilles Tendonitis and…wait for it…gout. Yes I know. I have finally become a parody of myself. Too much good living in grand hotels is clearly to b ...

Travels in my Drawing Room - travelsinmydrawingroom.wordpress.com

21 days ago by Fetch

Acer is currently the world’s second biggest PC manufacturer, but it’s looking to crank up its presence in Chinese markets within two years. While Acer has seen strong results in Brazil, Russia, and India, the netbook maker has had more trouble in China where Lenovo is king. Acer tends to bounce bet ...

AnythingNetbook - anythingnetbook.com

21 days ago by jimluke

Just finished this previous post on price discrimination, and it triggered a thought. Economists spend a lot of time (particularly in a principles course) discussing market structures like monopoly. We don’t spend enough on it’s reverse equivalent, monopsony. In monopsony, there’s just one buyer, of ...

EconProph - econproph.com · Rank: 182,787 · 2 references

21 days ago by jimluke

Arnold Kling explains partly why stores offer Black Friday (day after Thanksgiving) sales: price discrimination (see below the fold). Price discrimination is the practice of charging two (or more) different groups of buyers a different price for the same thing. The idea is to charge a high price to ...

EconProph - econproph.com · Rank: 182,787 · 2 references

36 days ago by Rags Srinivasan

You are walking along the dairy aisle, picking up Yoplait yogurts. You prefer the 99% fat free version, so you load up on some strawberry, some raspberry and some vanilla. The price? All of them priced exactly the same, 59 cents. (Let us ignore the one time promotions they run on one flavor to clear ...

Iterative Path - iterativepath.wordpress.com · Rank: 132,172 · 7 references

37 days ago by motels1-net

canadianhifive asked: An advertisement for a motel chain says that if you stay for three nights at the motel you can stay a fourth night for free. This represents a 25% reduction in price for people who stay four nights. Which of the following statements is more likely to be correct? A. This practic ...

Motels1.net - motels1.net · Rank: 47,967 · 12 references

39 days ago by Rags Srinivasan

Southwest steadfastly refuses to charge for bags (at least the first two bags). Their marketing campaign, “Bags Fly Free”, says it all. In the short run they are missing out on the profit from baggage fees. The total airline industry profit from baggage fee for last year was around $536 million. Sou ...

Iterative Path - iterativepath.wordpress.com · Rank: 132,172 · 7 references

40 days ago by Rags Srinivasan

This is favorite pricing case study for the past ten months or so – Sensorielle spa in the city I love, Boulder, went to a Pay-what-you-can pricing model. The spa’s owner, Ms. Petteway made it clear that this is not “pay what you want” but a scheme to allow those loyal customers who were hurt by dow ...

Iterative Path - iterativepath.wordpress.com · Rank: 132,172 · 7 references