econ-journal9

econ-journal9 - for different goods. Another example is the...

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9/30/08 Duc Hoang - Journal A very good example for the price discrimination principle is the airlines tickets. Various airlines recognizably apply different prices for the same flights in different periods of time when the number of travelers changes. For example, airfare often dramatically rises during holidays such as Christmas and Thanksgiving when there is the most traveling. However, the fact that they have different tickets prices in a flight which classify the business or VIP tickets and economy tickets is not considered as price discrimination since those are different prices
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Unformatted text preview: for different goods. Another example is the digital products such as digital cameras and cellphones. The latest products always have the highest price among the relative product series as producers often lower the product price when there is a new version introduced. For example, the new Blackberry Curve Titaniums price now is twice higher than the old Blackberry whose price just drops by over $200. This dropping price is not due to the change in product costs, but maybe to the change in product demand....
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econ-journal9 - for different goods. Another example is the...

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