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This paper presents a competition analysis method based on supply risk for a manufacturing duopoly of differentiated prices and lognormal random demand.
Individually differentiated prices tend to favor higher spending loyal shoppers.
As it becomes less new and less differentiated, prices should fall to reflect the product's lower, entry-level status.
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Differentiated price levels are everywhere.
Deadline differentiated pricing of deferrable electric loads.
For a social enterprise, differentiated pricing might just work.
"Lots of products offer differentiated price tiers by age, like Spotify does for students, for example.
We also propose the use of differentiated pricing and show how it can achieve credit equality among nodes, resulting in a more robust network under different traffic loading.
But America's state-run universities, which have traditionally kept their fees low and stable, might well try a differentiated pricing scheme as they raise cash to compete academically with their private counterparts.
Using US consumer expenditure survey data, and incorporating a differentiated price response for different households, we find that all three allocation strategies considered are progressive: a per adult based allocation is the most progressive, a per vehicle allocation nearer to proportional, and a per capita allocation in between the two.
This, though, requires consumers to adapt to differentiated price signals.
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