reading my he101 notes and they use clubs as an example for price discrimination!
it was just a minor example but i did a thorough analysis abt it. smart or what? HAHAHAHAHA
so i feel that clubs they practise 3 types of price discrimination! ok not really 3 types. more like 2 with a special one.
NO. 1: THIRD DEGREE PRICE DISCRIMINATION
they segregate their market by gender. BOYS VS. GIRLS. since guys have higher demand and it is relatively inelastic and girls have relatively lower demand and more elastic. all guys just wanna go there no matter how ex it is! explains for the difference in price for guys and girls. trying to gain as much producer surplus as possible right.
NO. 2: TWO-PART TARIFF
i'm using more of the one with single consumer. true it has 2 different types of consumer but they already discriminated by using 3rd degree soooo this applies more! apparently the expensive cover charge is to capture the entire consumer surplus as profit! then the drinks is more of depends whether u wanna buy or not. but a lot of ppl will just buy coz it's more convenient. so those consumers who buy, the club can get more revenue. and the irony is that even with expensive cover charge, their drinks are expensive too. SHLDNT BE LIKE THAT ARH. with high cover charge can already cover the consumer surplus. why charge drinks at a high price??
NO. 3: TWO-PART TARIFF WITH A TWIST
this is part of the above but as it says, with a twist. how creative can the name get? they let us pay high entry price and entitles the the buyer with a certain number of free units. actually 2 free units only. and even with the 2 free, they limit it to certain drinks. so in the end it's like not really that free? they entice ppl to get the free ones then cannot get enough and will try to buy more. next time just get what u r entitled to because u paid for it with a really high entry price!!!!
ok so this is just a really nerdy post by me. no choice. just really felt like doing an economic analysis because i'm on a full study mode :) :) and it's my favourite part of microecons!! woohoooo. love microecons! ok bye friends. back to studying.
club can't handle the economist :D
it was just a minor example but i did a thorough analysis abt it. smart or what? HAHAHAHAHA
so i feel that clubs they practise 3 types of price discrimination! ok not really 3 types. more like 2 with a special one.
NO. 1: THIRD DEGREE PRICE DISCRIMINATION
they segregate their market by gender. BOYS VS. GIRLS. since guys have higher demand and it is relatively inelastic and girls have relatively lower demand and more elastic. all guys just wanna go there no matter how ex it is! explains for the difference in price for guys and girls. trying to gain as much producer surplus as possible right.
NO. 2: TWO-PART TARIFF
i'm using more of the one with single consumer. true it has 2 different types of consumer but they already discriminated by using 3rd degree soooo this applies more! apparently the expensive cover charge is to capture the entire consumer surplus as profit! then the drinks is more of depends whether u wanna buy or not. but a lot of ppl will just buy coz it's more convenient. so those consumers who buy, the club can get more revenue. and the irony is that even with expensive cover charge, their drinks are expensive too. SHLDNT BE LIKE THAT ARH. with high cover charge can already cover the consumer surplus. why charge drinks at a high price??
NO. 3: TWO-PART TARIFF WITH A TWIST
this is part of the above but as it says, with a twist. how creative can the name get? they let us pay high entry price and entitles the the buyer with a certain number of free units. actually 2 free units only. and even with the 2 free, they limit it to certain drinks. so in the end it's like not really that free? they entice ppl to get the free ones then cannot get enough and will try to buy more. next time just get what u r entitled to because u paid for it with a really high entry price!!!!
ok so this is just a really nerdy post by me. no choice. just really felt like doing an economic analysis because i'm on a full study mode :) :) and it's my favourite part of microecons!! woohoooo. love microecons! ok bye friends. back to studying.
club can't handle the economist :D
posted by LOIS at
12:48 PM
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