2012Unpublished venueRequires access

Pricing policy - how a company can price different groups of consumers to eliminate the consumer surplus

Iveta Solčanská

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Abstract

The aim of this diploma paper is to prove that the application of the methods of discriminatory pricing is beneficial for both sides of the business transaction, the seller and the buyer, and that through these methods the seller can effectively capture consumer surplus and the buyer can benefit from price discounts. This work contains the theoretical framework of pricing methods, while special focus is put on consumer and producer surplus and discriminatory pricing. In the practical part, an analysis of international manufacturer is conducted and the proposal of discriminatory pricing methods to capture the consumer surplus is given.

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What this paper is about

The aim of this diploma paper is to prove that the application of the methods of discriminatory pricing is beneficial for both sides of the business transaction, the seller and the buyer, and that through these methods the seller can effectively capture consumer surplus and the buyer can benefit from price discounts. This work contains the theoretical framework of pricing methods, while special focus is put on consumer and producer surplus and discriminatory pricing. In the practical part, an analysis of international manufacturer is conducted and the proposal of discriminatory pricing methods to capture the consumer surplus is given.

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Available abstract

The aim of this diploma paper is to prove that the application of the methods of discriminatory pricing is beneficial for both sides of the business transaction, the seller and the buyer, and that through these methods the seller can effectively capture consumer surplus and the buyer can benefit from price discounts. This work contains the theoretical framework of pricing methods, while special focus is put on consumer and producer surplus and discriminatory pricing. In the practical part, an analysis of international manufacturer is conducted and the proposal of discriminatory pricing methods to capture the consumer surplus is given.

Key concepts: Economic surplus, Variable pricing, Pricing strategies, Database transaction, Microeconomics, Price discrimination, Work (physics), Business

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