Price discrimination
| Activity: Read the following Twitter thread (also available here). |
| Activity: Complete the India Worksheet, April 2019 or complete this India Quiz |
| Lecture handout: India DB* |
Textbook Reading: Chapter 1 (Section 1.3; pp. 30-38) and Chapter 4 (Section 4.3; pp. 112-122)
This session considers how economic concepts such as price elasticity and price discrimination illuminate the world around us.
I use Mr Busy and Mr Savvy as examples rather than the female versions because I find the “Little Miss” designation to imply subservience. Also, there isn’t a direct equivalent for both. Although there is a Little Miss Busy (even though the picture is not as evocative of busyness as Mr Busy) there is no Little Miss Savvy. There is a Mrs Thrifty, which works well, but she only appears as a minor character (as the wife of Mr Thrifty). And doesn’t look very thrifty. There is an alternative, and obviously fake “Little Miss Thrifty” (pictured) but she doesn’t look thrifty either. Liking shopping is probably the opposite of thriftiness! That’s why I stick with the men.
| Activity: Elasticity Assignment (30 points!) |
| Group activity: Wembley Stadium, July 2012 |
| Learning Objectives: Understand different techniques for price differentiation. See the relationship between revenue and elasticity
Cutting edge theory: The case includes a discussion of PWYW pricing models Focus on diversity: The case is set in India |