Price Discrimination Essay Example | Topics and Well Written Essays - 1500 words

Price Discrimination - Essay ExampleAccording to the research findings, customers can value from research and development as a result of increased revenue that companies earn. In the benefit industry, whatever of the customers will bring in from the low charge on off- lift time and the firms will benefit on the crown time due to high footings on services and products. both(prenominal) of the firms will increase revenues and be equal to be a going concern in business and even expand.According to the research findings, customers can benefit from research and development as a result of increased revenue that companies earn. In the service industry, any(prenominal) of the customers will benefit from the low price on off-peak time and the firms will benefit on the peak time due to high prices on services and products. Some of the firms will increase revenues and be adapted to be a going concern in business and even expand.Price discrimination may withdraw administrative cost w hen engaging in market segmentation and predatory pricing may be funded by the profits gained . Since PMC, some of the higher prices charge may be allocated inefficiently to the unintended consumer. Some of the customers may be charged high prices. The high prices may be unintended for the rich exactly the poor may end up also paying that high price (Patel, 2012). In conclusion, the principle of price discrimination on shelves in supermarkets would be square offd by the type, the strategies used in pricing and the methods that influence price discrimination. Products that are placed at the top of the shelves will have a different price to those at eye level and bottom shelves. Price elasticity of demand also influences the products placed on the shelves as those products place at eye level to have more demand at relatively cheaper prices. Also, certain reasons would influence price discrimination in a monopolistic market such as, service that involves specialization or professio nalism and geographical distance. Lack of availability of information also has an impact on price discrimination.