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Demand Analysis, Optimal Pricing and Estimating and Forecasting Demand

In what respects are the following common practices subtle (or not-so-subtle) forms of price discrimination?

a. Frequent-flier and frequent-stay programs
b. Manufacturers' discount coupon programs
c. A retailer's guarantee to match a lower competing price.

Address the the questions and please explain throughly for better understanding.

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Demand Analysis Optimal Pricing and Estimating and Forecasting Demand

a. Frequent-flier and frequent-stay programs
This is a not so subtle form of price discrimination.
The frequent flyer program is an example of a first-degree discrimination. The prices are individually tailored for each customer to be charged the highest price they are willing to pay. In a first-degree discrimination, each customer is offered the same set of prices, although the price could depend on the quantity purchased. The frequent stay program is an example of the third-degree ...

Solution Summary

The common practices for demand analysis, optimal pricing and estimating and forecasting demand are examined.

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