6Price Discrimination Simulation Game.docx - ECON 2120 Principles of Microeconomics Tiffany Bahm June 3rd 2019 Price Discrimination Simulation Game

6Price Discrimination Simulation Game.docx - ECON 2120...

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ECON 2120- Principles of Microeconomics Tiffany Bahm June 3 rd , 2019 Price Discrimination Simulation Game Pricing strategy has always been an important issue in economics. In this game, the price of airline tickets is related to elasticity, and the range of pricing is also related to peak/off-peak periods and the number of seats. Year 1- The first round of the system gives €54 to verify, when the click confirms, the random sales volume of the system is 344 (€54) and 534 (€46).In the next step, according to the notes, €61 is given to simulate and the sales become 317 and 356 respectively. There are 3 phases in total for pricing strategy, the price is set less than two weeks before flights, thus, €90 with 210 seats is required to set for the last phase with 350 empty seats. In the comparison, €58 with 302 seats with no empty seats left. According to the result, though there are still left 350 empty seats, it can be seen from the results that the profit is the highest which is€3491 for those 4 selected players. In the second round set by ourselves, I tries several set of data and I find when
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