ajaz_eco_204_2012_2013_chapter_16_Market_Power

By contrast airlines and hotels have a fixed number

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Unformatted text preview: g search results. Sellers such as children's clothing store Cookie's use software to change prices every 15 minutes in order to stay on top of Amazon rankings. The store's owner, Al Falack, said he often sells clothing cheaper on Amazon than at his bricks and mortar store in Brooklyn, N.Y. 89 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. "We're finding that we'll receive something fresh and new in the season and before we give it a chance to sell, we are selling it for less than we wanted," Mr. Falack said. In the 1990s, airlines became known for constantly changing prices, based on how many seats they had available on a flight and prices charged by competitors. Hotels soon followed with their own "yield management" systems, that allowed them to change room rates constantly. Now, Internet retailers are using similar software. A goal is to main...
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This document was uploaded on 01/19/2014.

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