Price discrimination

In the article, “Price discrimination land”, reporters explained how Disneyland will be implementing peak pricing. Peak pricing is congested pricing where customers pay an additional fee during periods of high demand. Also, Disney have already introduced surge pricing in February 2016. Surge pricing, is the temporary increase of a service because the demand is extremely high. The article compares Disney’s surge pricing to the well known company, Uber, explaining that when the mechanisms were disabled

If we are to fully understand competition within a market, we must identify how business dynamics evolve over time and know the conditions that encourage or deter entry within a market. Entry is defined as the beginning of production and sales in a market (Besanko et al), with new firms incentivised to enter by the potential profits available within an industry. However this threat of entry is limited through the structural and strategic barriers embedded in the market, which limit the profitability

factors. Market structures such as monopoly and oligopoly play a major part in setting price. Market structures can then influence the objectives and behavior within a firm (Sloman & Wride, 2009). This can lead to the use of different pricing strategies, thus having varied effects on the level of price set. Traditional theory suggests that a firms’ main objective is profit maximization. Therefore, prices will be set in line to meet this objective. A monopoly is defined as one dominant firm

1. British Airways Plc (BA) founded in 1974, was in the control of government for thirteen years and went into privatization in 1987. The industry operates about 240 aircrafts, serving about 120 destinations throughout the U.K and Europe including the Middle East, Africa, South and North America, Asia and the Pacific. British Airways competes with various other airlines in the industry but still it has maintained its domination in various parts of the aviation industry in the United Kingdom and Europe

Introduction: The September 11 attacks left a major impact that the airline industry is yet to recover from. Extended recession and increasing oil prices are the other major factors affecting the growth of the airline industry. At this scenario, the airlines operating with unoccupied seats make huge losses and sometimes the airliner even goes bankrupt; for instance, the kingfisher airlines in India has gone bankrupt due to failure in managing the unoccupied seats and inefficient management in their

objectives, whether that be its sales revenue, market share or indeed profit, and thus there is much preoccupation within a business about its pricing strategy. Ultimately, this will be guided by many factors; not least the market power it has to set the price of its products and the nature of the demand curve it faces. This essay will attempt to outline how a firm’s pricing strategy is influenced by the characteristics of the market in which it operates, looking at various market structures, including perfect

the current ticketing strategies and the change in customers’ behavior with the change in prices. This research creates a value to the airliner as a company by making profits and no loss at a least scenario, even if the airliner operates with unoccupied seats. Introduction: The September 11 attacks left a major impact that the airline industry is yet to recover from. Extended recession and increasing oil prices are the other major factors affecting the growth of the airline industry. At this scenario

Answer: Typically, the approach to study and discuss monopoly bases on the firms’ behaviors in pursuit of maximizing monopolistic profit. In particular, the monopolist’s profit maximization is derived and interpreted through the first-order condition, which is the quantity of output that marginal revenue equals to marginal costs (Mankiw, 2012: 283). Following the above logic above, the discussion of maximization of monopoly profit is usually conducted by the mathematical equation and figure, which

Industry Analysis Project Specialty Retail Industry Introduction The industry I have chosen for my paper is the Specialty retail industry or the clothing industry which has the SIC code of 5651. This industry consists of companies that are primarily in the business of clothing and accessories for men, women and children. These companies include unisex clothing stores and jeans stores for all ages instead of stores aimed at a particular age group or sex. Industry Environment The clothing industry

company was exposed to. The plan was to simplify fare structures into four main classes and stimulate increased demand by the consumer. The initiative was called Value Pricing and eliminated the majority of AA’s price discrimination practices into a simplified four-category system. The price simplification was warmly received by travel agents and heralded an industry response that eliminated 85% of fare variance. Under the leadership of the chairman of the time, AA had introduced several successful