Question

Provide an example (other than those included in the PPT slides) of each of the following...

Provide an example (other than those included in the PPT slides) of each of the following forms of price discrimination or pricing with market power. Each example is worth 3 points.

a) Two-part pricing:

b) Third-degree price discrimination:

c) Peak-load pricing:

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Answer #1

a) Two part pricing when the seller of the good or service charge two price for the same good. example, Telecom services charging a different tariff rate for calls in day and different price for using the service in night.

b) An example of third degree price discrimination is Airline ticket where the price of the service offered changes due to the person travelling.

c) example of peak load pricing is price of the movie tickets for the hows that see huge demand like the evening show are charged higher than the noon shows.

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