ajaz_eco_204_2012_2013_chapter_16_Market_Power

13 incidentally plenty of other auto makers killed

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Unformatted text preview: r we’ve discussed the “optimal price” there’s been the latent assumption that all customers pay the (same) price . As we’ll see later, a company may earn greater profits by abandoning uniform pricing and instead practicing price discrimination (charging different prices for the same product). One form of price discrimination is on the basis of market segmentation (aka 3rd degree price discrimination) where the company demarcates the market into different segments and charges each segment a different price. For example: Express delivery companies such as DHL, Fedex and UPS segment the market along various dimensions: document vs. parcel, personal vs. corporate account, geographic region, etc. Airlines segment the market on the basis of business and economy class Textbook publishers segment by geographic region (US vs. Canada) 12 Note to self: For book, insert section of price management, including inventory controls and auditing, forecasting demand and supply in local markets and the importance of the reserve, similar to central banks FOREX reserves. 13 Incidentally, plenty of other auto makers killed the go...
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This document was uploaded on 01/19/2014.

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