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| 03/06/2001 06:53 AM by Brandon; 3rd degree price discrimination indeed |
Yes, I think I spoofed. The initial view I had was that of 3rd degree price discrimination too but I had mixed feeling when I thought about the size of the fleet (the capital outlay) which the company would have to consider. Is it [View full text and thread]
| 03/05/2001 11:02 AM by Rodrigo; 3rd degree discrimination |
Hi, Brandon, I have a case for 3rd degree price discrimination. 3rd degree discrimination occurs when different submarkets are charged different linear price functions. This discrimination is founded on observable signals about consumer characteristics. Think of the visitors as being of two types: type 1: quick visitors and type 2: for-the-weekend visitors. Type-1 visitors are charged a unit price of X (round-trip price). Type-2 visitors are charged a unit price of Y, which is more than X/2. If type-2 consumers have less elastic demand, they will pay more. Let me know what you think.
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| 03/04/2001 11:51 PM by Brandon; Is this peak-load pricing or 3rd degree price discrimination? |
Hi! I'm not very sure if the following is a case of 3rd degree price discrimination or peak-load pricing. Need a little help. Thank you! My 1st guess is that peak-load pricing is being carried out here but I'm not too [View full text and thread]
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