Congestion pricing

Game theory is a very useful tool for making pricing decisions when competitors have more information about the market conditions. Game theory is concerned with how Individuals or the Company makes decision knowing it will have effect on each other's such as all the competitor considering each individual takes this into account. In the gaming theory one should consider factors such as reaction of competitors or tastes and preferences of consumers remain constant. The order in which players make…

Before you upload your file, ensure your name appears on the top of every page of your document. Keep a copy of your work on your hard drive/Google drive. For each of the following products/services state whether the elasticity of demand would be: a) elastic b) inelastic or c) it depends Include a brief explanation, not longer than a paragraph, for your choice for each product. Electricity I believe that Electricity is Inelastic because weather the price changes the…

Profit is the most critical component in light of the fact that the greater part of the organization is hoping to make a decent benefit aside from non-benefit organization like recreation focuses. Most likely organizations make a benefit is an absolute necessity so they can maintain the business without need to stress whether there is adequate cash accessible to continue supporting the developing of business furthermore as a prize to the proprietors for the dangers that taken for this business…

Delay discounting is a frame of mind that causes an individual to value smaller, immediate rewards more than greater long-term rewards because of how long it takes for the later rewards to be enjoyed. This impulsiveness can determine one's future success, or lack of it. (1) It can manifest in different ways, and affect a person's life through the habits he/she forms with this mentality. Delayed discounting not only bars individuals from having a successful future, but has also prevented society…

many items will qualify for the refunds”. Moreover, even if Tweeter’s competitors are worried about APP, they can adopt a similar program to APP or undertake a targeted price war. Since big retailers such as Circuit City and Lechmere were already pricing their products competitively, launching a similar program to APP would not create a huge impact on their bottom lines as few products would qualify for the program. They could also undercut Tweeter by offering significant sales on…

Price controls are maximum and minimum prices established by the government for goods and services. Minimum wage is a price control on the minimum amount a worker can be paid. Minimum wage was a struggle to get past in the Supreme Court. The first effort to get minimum wage was in 1912, but didn’t get passed until 1938 during the Great Depression, but only applied to "employees engaged in interstate commerce or in the production of goods for interstate commerce". Minimum wage was then extended…

In the world of business price gouging is not something unheard of, most every company and or product has had an incident with price gouging at least one time. Price gouging essentially is when the price of a good or services is at an “...unreasonable or unfair level” (Source). Approximately “34 states have enacted price gouging laws. A handful of state impose criminal charges on top of civil liability when a business is found guilty…” (Source). Unfortuntately there are no current federal laws…

Price gouging has been done many time before in natural disasters, for the purpose of their business earning more money. In situations such as an emergency, businesses should raise prices on their supplies with a reasonable price, but not excessively. The government should step on price gouging when businesses raise their prices too high, the government should make a law about this. When price gouging is done in a natural disaster, I think it affects the consumers and the businesses. When…

product was inferior quality? Two glasses of wine, we set up one of them £9 and the other one £45 delivers results showing people perceive the more expensive wine to be nicer. Odd number pricing also can mislead the customers, Odd pricing is a pricing method aimed at maximizing profit by making micro-adjustments in pricing structure. It relies on the assumption that consumers are calculation-averse and will…

Margaret Levenstein and Valerie Suslow seek out what determines a business cartel’s success. They reject the assumption of many economists that the main reason cartels fail comes from cheating firms, which undermine attempts by cartels to collude to raise prices and restrict output. They believe that cheating is just one facet of how a cartel can fail and not the main reason. To answer their question, Levenstein and Suslow attempt to answer four other research questions: 1. Can cartels succeed?…