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Saturday 17 May 2014

Unit 3: Pricing Strategies

Two pricing strategies that caught my eye yesterday, which allows for lots of economic concepts to be discussed, not least that many firms will not 'Profit Maximise', but choose alternatives which will benefit them in the long run!

1) Albion Rovers: Albion Rovers have trebled the number of season tickets they normally sell, just five days after launching a 'pay what you can afford' scheme. Read more here.

Things to think about: effective demand, price discrimination, consumer surplus, producer surplus, efficiency, equity, scarcity

This reminded me of the following pricing decisions too:

Radiohead's Honesty Box





2) Restaurant gives family "Well Behaved Kids" Discount

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