Question

2. Price Discrimination (24 points) First indicate the types of price discrimination for the cases below. Then explain the differences between the different types of price discrimination that you find in these examples. Al movlet Segretention Case A: Pop singer XXX is announcing a concert tour starting next summer, and there is a 20% price discount for those loyal fans who have always been actively participating in XXX's official fan club in the last two years. For those concert goers who order the ticket before this 5007 thanksgiving, they can enjoy a 10% "early bird" discount. Moreover anyone who buys the ticket can enjoy a 10% discount when they also shop at XXX's online merchandise store. Bundle na Case B: AL ABC Yoga studio the price of a single yoga class is $18, a five-class yoga pass (expires in two months) costs $80, and a ten-class pass (expires in four months) costs $150. It also offers one month unlimited yoga classes to the first time new customers at $59.99, which is normally $129.99. Moreover it offers the weekday morning class special discount: o unlimited weekday classes before 2pm at $109.99. - Gereening segreto

Answer 1

There are so many possible scenarios in price discrimination cases such as in monopoly the price would be higher, in case of perfect competition price would be at equilibrium but mostly it can be explained in three ways as under:

1. The first type of price discrimination is price can be varied if seller knows that how much buyer can pay and accordingly seller can change the price based on the capacity or affordability or urgency or on the mood of the buyer.
2. Second type is of the opportunist or one can say based on the loyalty of the buyer, seller can discriminate the price like if customer is very much loyal the seller would offer more discount than to non frequent customer. Further to boost the sell one can even offer the scheme of buy one get one scheme or any gift kind of scheme and create there by more buying influence in the mind of the customer.
3. The third type is for those group who rarely falls into any scheme or avoid the general mood of the buying. There are some special groups in the society who wants a very special kind of scheme and seller needs to discriminate into the price to attract those groups of the buyer such as elderly people, army people or student.

Now come to the two cases and let's have the full explanation on price discrimination one by one;

1. In the case of "Singer", it is the clear case of loyalty based price discrimination for those fans who attends every concerts since last two years. Further in case of early bird it is the special kind of discount to sale the more tickets and at last the discount offered at the rate ten percent is to boost the merchandise also which again help in selling more tickets.
2. In the case of Yoga classes all the discount which normally occurs were based on the time factor and to attract more participants one can discriminate in the price based on the time factor also.