Here is the synopsis of our sample research paper on Price Discrimination. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper looks at price discrimination, explains the concept and outlines a number of ways price discrimination can take place. The second part of the paper presents Apple's iTunes as an example of price discrimination. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEpridis.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
than the desire to charge a different price, usually with the aim of maximising profits (Shmanske, 2006). Price discrimination can take place in several ways. Primary price discrimination is
epitomised with optimal pricing. In a perfect model of optimal pricing, also know as perfect price discrimination the company will be able to divide the market into individual consumers and
then charge them the price they are each prepared to pay (Nellis and Parker, 2000). If the company was able to follow this model then it would be possible for
the firm to maximise their revenue by extracting all of the consumer surplus that lies beneath demand curve (Nellis and Parker, 2000). In a supply and demand equation there will
usually be some consumers who would still be prepared to pay a higher price, even if a point of equilibrium. With uniform prices those additional amounts would not be collected
by the company, but with what is effectually individual pricing, this surplus is collected (Nellis and Parker, 2000). In reality this model is virtually impossible to implement as firms
will not have sufficient information about the consumers and do not have the practical tools needed o support such a strategy. Transaction costs associated with this model also make it
very unattractive. The alternative is to segment the market in order to maximise income. In a monopolist market and a perfectly segmented market the average revenue curve effectually becomes the
marginal revenue curve (Nellis and Parker, 2000). Secondary price discrimination can be seen were a firm sells off packages of their output which are deemed to be surplus capacity,
with these packages being sold off at lower process than their standard price. For example, hotels selling off rooms at the last minute at lower prices to fill the rooms,
...