* Supporting documents submitted outside of the required timeframe will not be considered. * In the event of an emergency, please contact as soon as possible * Original copies of all supporting documents are required Identity Traveler's parent, child, or spouse Round-trip 1 adult Economy 0 bags Raleigh (RDU) Sat 7/8 Sat 7/15 Ad Covering more highway miles with 5G T-Mobile covers more highway miles with 5G than anyone. Proof of direct relationship with the deceased Note: The special circumstances refund guarantee only covers pregnancy discovered after a flight is booked If you received advice not to travel, a certificate of this advice Note: The special circumstances refund guarantee does not cover existing or chronic illnesses. People who travel for business purposes, however, need more flexibility in comparison to those who travel for leisure and so would book only a few days in advance.Proof of hospitalization (hospitalization period must cover the departure date of the travel) This is also because leisure travellers would have more elastic demand due to their sensitivity to price. Leisure travellers take advantage of 'advanced purchase' discounts, as the prices of tickets gradually get more expensive as the day of departure approaches. Customers who are travelling for the purpose of leisure are more likely to be sensitive to price and so would tend to book in advance to get cheaper tickets. Grouping is done this way due to the distinct behaviours between the two groups. In the airline industry, airlines practice price discrimination in a number of ways: Types of pricing strategies adopted for airline ticketsĪirlines use a combination of price discrimination and dynamic pricing in the pricing strategy for airline tickets. In our cinema example, adults tend to be charged the highest price as they have more disposable income and are less sensitive to price changes compared to other groups. Inelastic consumers are charged the highest price. For example, cinemas charge students a lower price since they have less disposable income and are more sensitive to price changes. Firms charge elastic consumers the lowest price. The whole market is split into two categories: elastic and inelastic consumers. 3 - Third-Degree Price Discriminationįigure 3 illustrates third-degree price discrimination. A classic example is some cinemas that often have different prices for children, students, adults, and the elderly.įig. Third-degree price discrimination occurs when a seller charges a different price to different customer groups. Consumers benefit from the lower price and that increases their consumer surplus and firms also benefit from the extra revenue. 2 - Second-Degree Price DiscriminationĪs figure 2 illustrates, firms initially put the price of a particular good or service at P 1. Examples of this are loyalty cards rewards or discounts for consumers, so that they can purchase more.įig. Second-degree price discrimination occurs when a seller charges a different price for different quantities consumed. In this case, there is no consumer surplus. 1 - First-Degree Price DiscriminationĪs Figure 1 illustrates, the producers get all the total surplus. This is when a seller charges consumers the maximum possible price they are willing to pay.įig. There are three types of price discrimination:įirst-degree price discrimination is also known as the purest form of price discrimination or perfect price discrimination. Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get consumers to agree to. Price Determination in a Competitive Market.Market Equilibrium Consumer and Producer Surplus.Determinants of Price Elasticity of Demand.Cross Price Elasticity of Demand Formula.Effects of Taxes and Subsidies on Market Structures.Monopolistic Competition in the Short Run.Monopolistic Competition in the Long Run.Behavioural Economics and Public Policy.
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