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Posts: 68
2 weeks ago

Question 1.

What is yield management? How is yield management being used in the airline industry?

Question 2.

Are restaurant coupons a form of price discrimination? Why or why not?
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Microeconomics
Edition: 7th
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Answer 1

Yield management is the use of sophisticated models of demand and pricing strategies to maximize revenue and profits. Yield management is used in the airline industry when airlines vary ticket prices based on the season, length of route, day of the week, time of day, and type of passengers on the flight.

Answer 2

Yes, coupons are a form of price discrimination. People who are willing to take the time to clip coupons have a higher price elasticity of demand than people who are not. Coupons are a way for firms to cut the price paid by higher price elasticity consumers—without having to cut the price for everyone else.
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2 weeks ago
Thanks for your help!
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