Advantages Of Price Discrimination In Telecommunication Industry

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Essay of price discrimination – In Chinese telecommunications industry University: University of Vienna Name:Yangyuxuan Zhou (a0853252) Professor: Sandro Shelegia UE: Introduction to Microeconomics WiSi2014/2015 Date :31.03.2015 -1- Contents 1.Introduction 2.Definitions and Assumptions • First degree price discrimination • Second degree price discrimination • Third degree price discrimination 3.Case Analysis – Chinese telecommunication industry • Advantages of price discrimination • Dieadvantages of price discrimination 4.Conclusion -2- 1. Introduction Today, we’re going to discuss the price discrimination in the market: we will show you what the Price Discrimination is and its precondition, then we will take the Chinese Telecommunications…show more content…
But if just for that so, why not just reduce the price directly? So it’s not for getting more clients. Another explaination of this practice is: the restaurants is doing the PRICE DISCRIMINATION – distinguish the customers. If you want to get the coupon, you must take some times, which means that coupons are not free, it costs your time, you need to searching, printing, reading the paper or magazine and so on. Who is willing to pay their time? It’s no doubt that the ones, whose time is not that costly. People who go to the restaurants, with the low cost in time, must be the one with the low income ( we called blue-and-white collar workers). One thing you need to know clear that the coupon is only for the specified items – you can not pick up what you really like, this is another thing you should pay for the coupon. Therefore, no matter who you are, if you use the coupon, you do pay something for it. Through the coupon, the restaurant can distinguish the“ rich’’ and the “poor’’. For the rich, who do not need to use the coupon, they will be offered the goods in more expensive price; for the poor, they get the discount foods via the coupons. Same time, Same place, Same item, but different price, that us the price discrimination. The food supplier gets more comsumer surplus from the Customers, increasing their profits. Now let’s discuss more price discrimination phenomenons in our life, basing on its…show more content…
Generally speaking, if the price discrimination can bring more new clients, improving the sales and production capacity, then the walfare to the clients will be added, win – win strategy to both the operators and the clients. But if the operators are doing it in the very plundering way, which mean its quotation is lower than its cost, clients won’t get any benefit, but also will suffering from some loss, negative effect in the sociaty

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