- The additional charge for the return down the hill (3 Euro = 12 Euro - 9 Euro) is much less than the single ride up the hill (9 Euro). Since the stroll down the hill is a closer substitute than the climb up, demand is more elastic coming down.
- The "concession" is a catch-all phrase for the elderly, students, and maybe a few others. These folks tend to be poorer and more elastic and so get a discount.
- They charge lower average prices for groups of preschool children. This is a form of bundling.
- They charge lower average prices for large groups and the rates fall as group size increases. This is more bundling with larger groups being more elastic.
- Finally, families get increasingly larger discounts on ever more children. That is, there are quantity discounts on kids.
- Did I miss any other dimensions?
Wednesday, July 12, 2017
How many ways can you price discriminate?
Also in my travels, I got to got to Heidelberg and rode the funicular up to the schloss. Their pricing schedule demonstrates multiple ways in which they price discriminate.
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