Price Discrimination

Hello there and welcome back,

Here I’m going to discuss for the first time an interesting article that one of the others blog, more precisely by Tim Harford went and discuss.

Many people know how eventful travelling is, and the mobile companies how smart with their service offerings are, however, not everyone is aware of some practices used to pricing products and services.

Such techniques are called Price Discriminations.

So what is price discrimination?

In theory, as Industrial Organisation goes and explain, price discrimination is the pricing of the same service or product at different rates, in practice is used by airline companies to price the same seat at different times according to the plane capacity.

In fact, one of the most not lucrative businesses and that most often takes the headlines are the airline industry, but to stay competitive they use a pricing technique called price discrimination in combination with yield pricing.

I might be wrong in this article, so be free to comment about this post.

In practice there are three kind of pricing discriminations techniques. In practice they are fully described as when the company uses to sell the same product or service at different prices based on differences such as, age, gender, income and etc.

The first kind is called full pricing, when the price is negotiated and the supplier and the buyer agree on a certain price which allows for the supplier to get the maximum benefit possible.

The second kind is called product bundle, and happens most often than thought, for example when subscribing to the mobile service, the operator allows for subscription of bundled services and a discount price.

The Third is called group pricing and happen when prices are established based on groups, such as age, demographic data, income, etc.

with this blog post j provided you an introduction to a new pricing technique, for more information contact us via the contact form, and I will provide for a consultation.

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