"discriminator" - 1 õppematerjal

Monopolistic competition

- Answer ­ Price discrimination is a marketing means to increase economic profit Methods of price discrimination · Discriminate among groups of buyers - works when different buying groups are willing  - to pay different prices (on the average) for the same good or service Example: Airline travel ­ prices target business travelers vs. leisure time travelers · discriminator is advance notice, shorter the notice, the higher the price Some Examples of Price Discriminations ­ Doctors often charge rich patients more than poor patients · They may have one price for those with insurance and another price for those without insurance ­ Movies in the evening cost more than those in the early afternoon ­ Senior citizen, youth, and student discounts ­ New and used cars ­ Youth fairs on airlines