Thursday, January 30, 2020
Price Discrimination Revised Essay Example for Free
Price Discrimination Revised Essay Jane, thinking that a vacation in San Francisco to visit her parents would provide her with a much-needed rest, bought a ticket two weeks in advance for a weekend flight. She would be sitting in 11A. On the day before Janes flight, Freya gets a call from her boss, instructing her to attend the companys meeting in San Francisco. She booked a flight for the next day immediately upon getting the call. Freya sat in 11B            Freya paid $500 more than Jane for basically the same service, occupying adjacent seats. And this is a prime example of price discrimination. * * *            Price discrimination is simply the charging of different prices to different customers (Stavins, 1996, p. 3). It is characterized as price discrimination when the difference in prices are not due to difference in costs.            Scott Woolley writing for Forbes.Com simplified it further, saying that price discrimination is when an airline charge some customers more than other customers for the same (or almost the same) thing (Woolley, 1998.)            Tricia Ellis-Christensen stated that price discrimination is a widespread practice, and it doesnt necessarily imply negative discrimination.            Price discrimination is categorized into degrees depending on the market segmentation, the customers ability to pay or demand elasiticity. (Ellis-Christensen, undated).            First-degree price discrimination occurs when identical goods are sold at different prices. This is most evident in the sale of both new and used cars wherein the salesperson gauges the maximum price at which the car can be sold. This type often includes bargaining, or negotiating for a lower price (Ellis-Christensen, undated).            Second-degree price discrimination is when lower prices are charged for bulk or higher quantities (Ellis-Christensen, undated).            Third degree price discrimination requires understanding the market, and is more prevalent. This type often plays on segments of the target market. An example is discounts offered to students. (Ellis-Christensen, undated).            Conditions for Price Discrimination. Joanna Stavins further explains that for an airline or company to successfully discriminate on price, it must have some market power, to be able to charge prices above the marginal cost. Typically it has monopolized that business. Another condition is the heterogeneousity of its consumers. Lastly, product resale should be costly and impossible, to prevent arbitrage. (Stavins, 1996, p. 3)            Stavins also explained that the monopolistically competitive: conditions in air transportation business allows for price discrimination. (Stavins, 1996, p. 3)            Stavins stated that airlines differentiate between each other by offering different flight schedules and routes. Stavins also wrote that airlines attach various restrictions to cheaper tickets, making them more unattractive to consumers who give more importance to time and convenience. Meaning, a business traveler wouldnt mind paying more to ensure that he arrives on time, as opposed to a passenger on a budget.            Advantages.  In some cases, price discrimination can implement efficient prices (Armstrong, 2006 p. 6). Arvind Sahay writes that pricing products differently can increase revneues and profits by 8% and 25% (Sahay, 2007, p. 54).            Price discrimination also opens markets, as in offering ones goods at a high value market at a certain price, while giving it at a lower price at a lower value market. (Armstrong, 2006 p. 8)   This way, a business owner can reallocate demand to more suitable times while supply is limited (Sahay, 2007, p. 54).            On a more practical level, price discrimination will enable more firms to increase revenue, which can then be used for research and development. Consumers, on the other hand, will be able to benefit from lower fares (economicshelp.org, undated).            Disadvantages. On the other hand, some consumers will end up paying higher prices. Price discrimination will also cause a decline in consumer surplus. There maybe costs associated with segmenting market. Price discrimination also opens the field for predatory pricing (economicshelp.org, undated). Price Discrimination in Airlines            The increasing use of price discrimination, in all industries, is due to the new and affordable technology that most companies can install and use. Recent studies have also shown that consumers will pay different prices if the companies use the right approach (Sahay, 2007, p. 53).            In short, these days, airlines are pulling off price discrimination easily. On a purely technical level, Airlines are able to practice the third degree of price discrimination (segmentation-based), and even to some respects, the second degree of price discrimination by employing yield management tools.            Cunningham and Brady explains that airlines have been dividing their customers into groups: government vs. business vs. leisure travellers, first or economy class, etc. With the advent of the computer and I.T., airlines have gained more ability to match fares with their customers demands. (Cunningham and Brady, 2001, p. 10).            Yield Management tools allows the airline to sell the right seat to the right passenger at the right time and price, basically charging various rates for the perceived service benefit (Cunningham and Brady, 2001, p. 11).            Also, yield management allows for Ramsey pricing, which involves varying the prices for fare based on demand elasticity in relation to the marginal cost. Meaning, the more sensitive the market is to its price, the closer its price will be to the marginal cost. This explains why business market fares are higher than those who are on vacation (Cunningham and Brady, 2001, p. 11).            Since it is not easy to explain various yield management techniques of airlines, it would be best to look at practical scenarios for airline companies. Empirically, here are some examples of airline price discrimination.            Joseph Turow, writing for the Washington Posts, cites an example regarding airline Web sites that offer lower fares for first-time customers (Turrow, 2005). Technology has also made it easier for businesses such as airlines to do customer profiling. Turrow (2005) and Wooley (1998) insinuates that since businesses can now use computers and databases to store more information about a customer, it can create profiles on that customers and price accordingly. Turrow cited the case when Amazon.Com came under fire for selling the same compact disc album to different customers at varying discounts. Wooley, on the other hand, says that catalogs sent to somebody who lives in a high-end neighborhood include only one price, while the another version of the catalogs featuring the same products sent to other less-glitzy neighborhoods have discount information on them. With more and more information about the customer being easily made available, the more airlines know how to push the correct buttons and learn their ability to pay, and their willingness to pay.            Airlines also give early-bird discounts wherein those who book early get lower prices. This type of price discrimination plays on demand inelasticity.            People who book late are usually those who needs to be on the plane, and thus would be willing to pay any price just to get to where one wants to be. (Riley, 2006). Differences in ticket pricing is most reliant on supply and demand (Devlin, 2002). Fredrik Wallenberg explains that to get an advance purchase discount, one will have to book from one to three weeks in advance. (2000, p. 7)            On the other hand, SoYouWanna.Com advises that some of the cheapest plane tickets become available at the last minute. This is due to the fact that airlines typically want to fly with a full plane. Also, airline seats are seen as a perishable product, in the event that they are not used before expiration it becomes worthless (Sahay, 2007, p. 55)            Other airlines also use Saturday night stay-over as a mechanism for price discrimination. Airlines set a higher rate for business travelers who are unwilling to spend the weekend away from home (Wallenberg, 2000).            For some, airlines often reward loyal customers with a lower price on premium tickets if theyve reached a certain number of mile on their frequent-fliers programs. Keith Devlin said that he was able to buy a round trip ticket from San Francisco to Milan for a bargain price of $1000. Devlin upgraded it to business class at no cost. Devlin got the bargain beceause he has earned enough miles on Uniteds Mileage Plus. Devlin adds that a colleague who will be on the same flight at the same time, was not able to upgrade (Devlin, 2002).            US Airways has the EZ Savers Club, which is actually an automated mailing list where subscribers can get mails detailing reduced rates on specified travel dates (Bringing market discipline, 1998).            Other programs are age-dependent. Students and seniors typically get a discount on airlines.            Another form of price discrimination employed by airlines is temporary seasonal discounts for airfares that are meant to increase business. (Ellis-Christensen, undated).            Airlines have a big market with a large number of heterogenous customers, the more disparate their customers are and their behaviors, the more willing their customers would be to pay different prices (Sahay, 2007, p. 56).            Is Price Discrimination Illegal? Price discrimination may be illegal in some cases.            However, for it to be deemed illegal, it has to be seen in light of anti-competitiveness. Carl Person said that the Robinson-Patman Act protects victims of unlawful price discrimination. Persons provided the following example where in a retail store purchases the same thing from the same supplier for a much higher price. The store who bought the merchandise at a higher price would be unable to compete on price and usually loses business to its competitor (Persons, 1997).            The Federal Trade Commission clarifies that price discrimination may be used as a predatory pricing tactic to harm competition at the supplier’s level (Federal Trade Commission, undated).            This whole scenario doesnt apply to airline tickets. Imperfect Information            In a perfect world or market situation, each consumer should have perfect information about the price of services and goods. However, information problems are highly ostentatious in complex and opaque markets, where there is infrequent patronage. Markets with intermediaries or those with a time lag between the time of purchase and the expected benefits are also susceptible to the problem. The airline industry is also a primary industry for imperfect information due to its complex pricing structures (Lindley, 2007, p. 74).            Imperfect information could harm a customer because it would effectively prevent him from turning to certain potential substitutes (Lande, 2007).            Moreover, some customers might not know of the existence of an option. Some customers might not even realize that best cost-saving option (Lande, 2007).            In short, as Dominic Lindley writes, the customer may not buy the cheapest or even the most appropriate product or service; may buy a service or product that does not perform as well as planned; or may be unaware of their rights and remedies if something goes wrong (Lindley, 2007, p. 74). Conclusion            It all boils down to the fact that imperfect information could hinder a customer from making a more informed decision about what hes purchasing.            Determining the cost of an airline ticket is a complicated task. With price discrimination, it really just an interplay of demand and the customers ability to pay. Price discrimination allows businesses to optimize their operations for maximum benefits and income on their marginal costs. Airlines, among other businesses, are in a position to exploit that advantage because they satisfy all conditions needed for price discrimination.            For consumers and passengers to get the optimum value for their money, they must be vigilant. They must know their options, and choose accordingly. References  Armstrong, Mark. (2006). Price Discrimination. University College London. Retrieved on 3 April 2008. http://else.econ.ucl.ac.uk/papers/uploaded/222.pdf Brady, Stephen P. and Cunningham, William A . (2001). Exploring predatory pricing in the airline industry. Transportation Journal, 41(1), 5-15. Retrieved 21 April 2008 from ABI/INFORM Global database. (Document ID: 124411971). Bringing market discipline to pricing. (1998, January). Businessline,1. 21 Retrieved April 2008, from ProQuest Asian Business and Reference database. (Document ID: 25422269). Devlin, Keith. (2002). The crazy math of airline ticket pricing. Retrieved on 3 April 2008. http://www.maa.org/devlin/devlin_09_02.html Ellis-Christensen Tricia. What is Price Discrimination? Retrieved on 3 April 2008. http://www.wisegeek.com/what-is-price-discrimination.htm Lande, Robert. (2007). Market Power Without A Large Market Share: The Role of Imperfect Information and other Consumer Protection Market Failures. Retrieved on 3 April 2008. http://www.justice.gov/atr/public/hearings/single_firm/docs/222102.htm Lindley, Dominic. (2007). Imperfect information for consumers. Consumer Policy Review, 17(3), 74-79. Retrieved 21 April 2008, from ABI/INFORM Global database. (Document ID: 1328552571). Persons, Carl E. (1997). Do You Have an RPA Price Discrimination Claim? Retrieved on 3 April http://www.lawmall.com/rpa/rpaclaim.html Riley, Geoff. (2006) Price Discrimination. Eton College. Retrieved on 3 April 2008. http://www.tutor2u.net/economics/revision-notes/a2-micro-price-discrimination.html Stavins, Joanna. (1996). Price Discrimination in the Airline Market: The Effect of Market Concentration. Federal Reserve Bank of Boston. Retrieved on 3 April 2008. http://bosfed.org/economic/wp/wp1996/wp96_7.pdf SOYOUWANNA FIND A CHEAP PLANE TICKET? Retrieved on 3 April 2008. http://www.soyouwanna.com/site/syws/planetix/planetix.html Sahay, Arvind. (2007). How Dynamic Pricing Leads to Higher Profits. MIT Sloan Management Review, 48(4), 53. Retrieved 21 April 2008, from ABI/INFORM Global database. (Document ID: 1360146151). Turow, Joseph. (2005). Have they got a deal for you. Washington Post. Retrieved on 3 April http://www.washingtonpost.com/wp-dyn/content/article/2005/06/18/AR2005061800070_pf.html Wallenberg, Fredrik. (2000). A study of airline pricing. School of Information Management Systems, University of California at Berkeley. Retrieved on 3 April 2008. http://people.ischool.berkeley.edu/~fredrik/research/papers/InternetTravel.pdf Wooley, Scott. (1998). Mine was cheaper! Forbes.Com. Retrieved on 3 April 2008. http://www.forbes.com/global/1998/1102/0116058a.html
Wednesday, January 22, 2020
Women as a Minority Group Essay -- essays research papers
Women as a Minority Group      Women have been discriminated against since the beginning of time, as early as the first people, Adam and Eve. Eve was called the evil one, who ate fruit from the tree of knowledge. Once she had the knowledge to know right from wrong, she chose to do wrong and give the fruit to Adam. Examples like these can be shown all over history books, in stories, tales and legends across the entire world. Women have been subordinate to men in virtually all societies throughout history.      The ideology that one sex is superior to the other is called sexism. The presumption of male sexism led to patterns of prejudice and discrimination against women. These prejudices and discriminations have led to many beliefs or ideas of why women are inferior to men. They range from brain size to sexual differences, including personalities based on genitalia. Cross-cultural studies demonstrate how the socialization process and societal expectations of men and women produce variances in sex-role norms and behavior. As the realization of women as an exploited group increases, the similarity of their position to that of racial and ethnic groups becomes more apparent. Women are born into their sexual identity and are easily distinguished by physical and cultural characteristics. In addition, women now identify that they are all sufferers of an ideology (sexism) that tries to justify their inferior treatment. In all societies around the world, women are treated as if they are a minority group, just like any racial or ethnic group that is out of the norm. The justification for considering women as a minority group and the existence of sexism becomes clear through the examination of social indicators, including education, employment, and income.      Education was sex segregated for hundreds of years. Men and women went to different schools or were physically and academically separated into â€Å"coeducational†schools. Males and females had separate classrooms, separate entrances, separate academic subjects, and separate expectations. Women were only taught the social graces and morals, and teaching women academic subjects was considered a waste of time. Even after these prejudices were overcome, the education system still maintained sexism in both obvious and subtle ways. Books rein... ...nses for maternity and family medical leaves. If a woman chooses motherhood, then she must lower her occupational goals and expectations. A woman with children will fall behind a childless woman in earnings, as the childless woman goes up the corporate ladder faster. Women will then risk career advancement by having children. Also, a working mother must not only juggle a family and a career, but she must find child-care as well. Child care costs are the major reason why most women end up just quitting their jobs. The majority of a working mother’s salary goes directly to the child care provider. If women were paid equal to men, more families may be able to pay for child care expenses and working mothers could continue to work and get ahead. Women have been treated unequally since the beginning of time. Just recently have things began to change for the better for women and the future of our society. The increase in women’s equality rights will take time, but some day women and men will be treated equally. This cannot happen until each of us is able to look at a person and just see another individual, not a male or a female, white or black, rich or poor†¦ a person as just a person.
Tuesday, January 14, 2020
Junk Food Essay
Basically, it’s anything that is high in calories but lacking in nutrition. Hamburgers, chips, chocolate bars and hot dogs fall in this category. Pizzas, although they can have vegetable and cheese toppings, are also included as they contain a lot of fat. Obviously, a diet of junk food is not the best thing for your health, particularly as it is highly saturated fat. In 1993, the Journal of the National Cancer Institute reported this type of fat to be associated with greater risk of cancer. Apart from the risk of cancer, another side effect of consuming highly fattening junk food is that you are likely to gain weight. This is especially true because you tend to eat more, as junk food is less satisfying and lower in vital nutrients than healthier food. The best advice, then, for those who cannot live without their hamburgers or chocolate bars, is to limit the amount of junk food they eat. Another alarming thing about people’s lifestyle today is that while the amount of junk food we eat has increased, the amount of exercise we do has actually decreased. Exercise plays an important part in keeping the body fit and healthy; it helps to control our weight and, if taken regularly, can also decrease our chances of having a heart attack in later life. What is more, you don’t have to exercise much to gain visible benefits. Twenty minutes three times a week is all that is necessary. Even though people nowadays are actually far more aware of the importance of exercise and a healthy diet then they were a few years ago. The new unhealthy way of life is surprisingly popular. Recent research has shown that young French people, who prefer burgers and chips to rich gourmet dishes, tend to become overweight. Weight gained in adolescence is extremely hard to lose in later life, so researchers are predicting that the new French generations are not going to be admired for their slim figures as the French have traditionally been. Researchers suggest that the new generation will be much more likely to suffer from heart and liver disease. What can’t be emphasized enough is the fact that a balanced diet and regular exercise bring significant health benefits. You can gain anything from glowing skin to an all-round feeling of good health. One way or another, the vast majority of people seem to be missing out on this, due mainly to the pressures of modern life. Ironically, if they were to make time to exercise and improve their eating habits, they would probably find that they were far better equipped to deal with their stressful lifestyles than they are now.
Monday, January 6, 2020
Germany s War And The Holocaust Disputed Histories
Julia Katzman December 4, 2014 History of War Professor Nolan Book Review #2 Evaluating History Bartov, Omer. Germany s War and the Holocaust: Disputed Histories. Ithaca, NY: Cornell University Press, 2003. Kindle. For decades, historians and citizens have struggled to grasp the relationship between the German army and the mass murders committed during the Holocaust. These questions have persisted since the concentration camps were liberated and the extent of the atrocities committed during World War II were revealed. Omer Bartov provides a myriad of scholarly interpretations in his fifth book, Germany’s War and the Holocaust: Disputed Histories. In this work, Bartov provides a historical and scholarly discourse on the German army and its institutionalization of mass murder. Overall, Bartov’s book is well supported through his extensive use of secondary material and his ability to appropriately characterize specific nations’ reactions to historical Holocaust assertions. However, Bartov’s lack of primary documents, exaggerated critiques, and organizational flaws detract from his expressed thesis. These deficiencies cause his work to read more as a disjointed series of book reviews, rather than a single, unified statement. Omer Bartov separates his analysis into three different sections, each of which comments upon prominent issues in Holocaust scholarship. His first section discusses the nature of the German army on the Eastern Front during World War II, whereShow MoreRelatedHolocaust Denial and Distortion Essay2228 Words  | 9 Pagesâ€Å"One is astonished in the study of history at the recurrence of the idea that evil must be forgotten, distorted, skimmed over. 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