Second Degree Price Discrimination
Many companies may practice second-degree price discrimination without realizing it by offering volume discounts or charging more for higher quality products or services. To determine what second-degree price discrimination is in real-world settings and to identify appropriate examples of the practice, this paper reviews the relevant literature concerning second-degree price discrimination, followed by an analysis of its important aspects from an economic theoretical perspective. An examination concerning how producers discriminate between different types of consumers is followed by a discussion concerning welfare implications in the example and the potential role for governments to regulate this practice. A summary of the research and important findings are presented in the conclusion.
Review and Discussion
Whenever companies offer their products or services at a discounted price for volume purchases or set higher or lower prices depending on the quality of those goods or services, they are practicing...
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Managerial EconomicsOutlineIntroductionOverview of Market StructureOverview of PricingRelationship between Market Structure and Pricing StrategyMarket Structure Pricing Practices� Pricing Practices for Monopolistic, Monopolistic Competition, and Oligopolistic Markets� Pricing Practices for Perfect Competition Markets� Price Matching� Inducing Brand Loyalty� Randomized PricingConclusionReferencesMarket Structure Pricing PracticesMarket structure is one of the major factors that shape decisions made by business owners and managers. Generally, business owners and managers do not make decisions in a vacuum as
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It is argued that while land tenure data can be instrumental in addressing land-related conflicts, much of the practical value is lost because of inconsistency of information and because information is not readily accessible, or cannot be combined to allow for greater depth of analysis. In practice, this means that policy-makers cannot make immediate use of the information that is available because additional time and expense are required either
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