Firms with market power set prices with the basic objective of capturing consumer surplus and converting it into additional profit for the firm and this goal can be achieved using price discrimination’. (i) Explain the above statement with the use of two real case studies from any country in the world

Microeconomics

‘Firms with market power set prices with the basic objective of capturing consumer surplus and converting it into additional profit for the firm and this goal can be achieved using price discrimination’.

 

(i) Explain the above statement with the use of two real case studies from any country in the world.  Select onecase study from the airline industry and one from the telecommunications industry.

(ii) Analyse and evaluate how any or all of the three broad forms of price discrimination are practiced in these industries.

 

Use well-constructed, case specific diagrams in your analysis.

 

– minimum 10-15 references (at least 4 or 5 academic journal articles)

– 2500 words

– citation and referencing style: chicago

– Graphs/Diagrams/Tables must have titles, be clearly labelled, explained and referred and cited within the main text of the essay. Do not put relevant and essential graphs, diagrams and tables in an appendix. Construct any relevant diagrams do not simply cut and paste from your Reference sources.

 

Essay format:

eg.

1.0 Introduction

2.0 Statement Analysis

2.1 Case study from ….

2.2 Case study from ….

3.0 Analysis of the broad forms of price discrimination

3.1 …. industry practices (2nd and 3rd degree price discrimination)

3.2 …. industry practices (2nd and 3rd degree price discrimination)

4.0 Conclusion

 

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