Question

Consider the following two price discrimination situations. I.) It is very common for passengers on the...

Consider the following two price discrimination situations.

I.) It is very common for passengers on the same flight to have paid very different amounts for their airline tickets, even though they are all traveling on the same exact route at the same exact time.

(a) How do airlines segment the market – in other words, how do they decide whom to charge more vs. less? Explain using economic terminology!

(b) Preventing resale is an important condition of making any price discrimination scheme work. How do airlines handle this?

II.) Movie theaters are able to charge less for afternoon tickets than for evening showings. How do they use time of day to separate market segments by demand elasticity?

Homework Answers

Answer #1
  1. Airlines segment market based in economy and business class and offer different level of services and experience to both types of customer by charging differently
  2. Preventing resale is done by stamping and accreditations of gate pass which cannot be redone so resale doesn't happen using black marketing techniques
  3. Movie shows use demand elasticity like when demand is higher in evening charges are higher as occupancy rate is high and vice versa in afternoon show with low rates low occupancy to ensure higher volume of audiences all time and maximisation of revenues.

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH ALL THE BEST IN FUTURE

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Suppose that the time (in hours) that Irene spends on an untimed final exam follows an...
    asked 15 minutes ago
  • The following sample observations were randomly selected. (Round intermediate calculations and final answers to 2 decimal...
    asked 28 minutes ago
  • what type of graph is best suitable for data obtained from customer ratings. The ratings are...
    asked 31 minutes ago
  • Determine the cumulative 15-year 18 kip ESAL’s in the design lane for 2-lane highway for the...
    asked 39 minutes ago
  • Q: Dr.Grimace, the evil dentist, is trying to find out if his patients suffer from periodontal...
    asked 39 minutes ago
  • After collecting data on 19283 dogs, you find that male vallhunds have an average weight of...
    asked 41 minutes ago
  • Research Target Corporation and assess your satisfaction with the company you researched and make recommendations about...
    asked 42 minutes ago
  • Evidence suggests that 70% of FSU students like turtles. Suppose we randomly sampled 15 FSU students....
    asked 42 minutes ago
  • Ulrich challenges the appropriateness of the nearly universal symbolism of the spinning wheel as the marker...
    asked 43 minutes ago
  • Differential Equations: Please try to computer type, if not possible be clear and organize. Thank you...
    asked 43 minutes ago
  • In your opinion, what are the three (3) most important benefits an employer can give to...
    asked 49 minutes ago
  • In a test of the effectiveness of garlic for lowering​ cholesterol, 81 subjects were treated with...
    asked 51 minutes ago