scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 2,334
Define discuss and account for the existence of price discrimination Compare and exemplify the first second and third degrees of such discriminationPrice discrimination is the practice of setting different pricing formulas in different virtual markets while still maintaining the same product throughout The prices are based upon the price elasticity of demand in each given market In more practical terms that means that during Ladies Night at MP OReillys it costs more for me to have a beer than if I were a female simply because this particular saloon sees fit to charge members of the female species less as a means to draw more such females to the establishment on such a night Price discrimination is rampant in many areas of the commercial and business world Movie theatres magazines computer software companies and thousands of other entities have discounted prices for students children or the elderly One important note though is that price discrimination is only present when the exact same product is sold to different people for different prices First class vs coach in an airline though sometimes just differing in how many free drinks you can get is not an example of price discrimination because the two tickets though comparable are not identicalPrice discrimination is based upon the economic premise and practice of marginal analysis This conceptualization deals specifically with the differences in revenue and costs as choices andor decisions are made A good example is illustrated in the textbook by the Hartford Shoe Company model The most important portion of the model however is on page 201 Here it is calculated that if the company raises the prices of the shoes from 60 to 65 their revenue and number of shoes sold will shrinkbut their actual profit margin will raise slightly due to that higher profit margin more than just offsetting in the loss in sales Profit maximization is achieved neither where the number of products sold is the highest nor
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA