KillerApps Micro: Pricing Strategy
12/30/14
Free public goods with close to zero marginal cost could profit from partial excludability.
12/27/14
The pay-what-you-want model makes economic sense when it is used as a limited-time promotion and as a loss-leader to increase sale of higher profit-margin related products.
09/07/09
Fruit vendors may choose perfect competition or pricing power depending on foot traffic and other locational advantages.
09/11/07
Death-postponing cancer drugs command high prices because of the third-party payment health insurance system.
09/11/07
Mail-in rebate coupons succeed in promoting sales at relatively low cost because of low redemption rates.
09/11/07
Innovative products offering high customer value should command value-based prices rather than cost-plus prices.
03/07/07
The middleman role of music labels to produce, distribute, and promote albums has been compromised by the Internet to the benefit of the artists and consumers.
02/27/07
To enhance profit, businesses often sell non-interoperable versions of the same products in different markets.
02/03/07
Free or subsidized parking has suffocated the development of mass transit and increased traffic congestion and air pollution.
01/10/07
Loss leaders might conceal punishing fee traps for the unwary myopic consumers.
06/22/06
Flat-rate pricing may increase the bottom line of businesses when consumers over-estimate the amount they might consume and under-estimate the cost of un-restrained use.
06/22/06
Price hike is difficult to sustain in commodity business with many competitors.
06/22/06
Super-sizing fast-food items boosts both the bottom line and the waistline.
05/09/06
Mixed bundling, by offering a package deal as well as separately priced items, can be a revenue-maximizing pricing strategy in the face of varying customer needs.
01/14/06
Unbundling the intellectual content from the physical embodiment of textbooks might lower the prices of textbooks.
02/26/05
The Internet has made it possible to replace fixed pricing with flexible pricing based on changing supply and demand conditions. Spot pricing will lead to a more efficient market with winners and losers.
06/21/04
Sports teams and other entertainment promoters use online secondary ticket auction market to compete with scalpers while sticking to uniform pricing for the primary market.
09/17/02
Peak-load pricing can lower electric bills and increase business profitability by inducing household consumers to shift their consumption from higher-rate peak period to lower-rate slack period.
12/21/01
Charging motorists for contributing to rush-hour congestion may be economists' dream of internalizing negative externality on toll roads but politicians' nightmare when competing highways are free.
11/09/01
The pricing strategy of charging premium prices for business travels and deeply discounted prices for leisure travels has fallen apart amid a slowing economy and fear of on-air terrorist attacks.