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In the past, such price discrimination was limited to coarse categories, e.g., setting higher prices for business travelers and lower prices for leisure travelers.
So just as a more established consultant would do, this philosophy meant setting higher prices for my services before I actually felt "ready" to charge that much.
Drugmakers "face little resistance to setting higher prices as long as patients don't have to pay for them out-of-pocket," says David Howard, a pharmaceutical marketing expert at Emory University.
This pricing mechanism has been used in several public utilities and public services for setting higher prices during congested periods, as a means to better manage the demand for the service, and whether to avoid expensive new investments just to satisfy peak demand, or because it is not economically or financially feasible to provide additional capacity to the service.
Similar(56)
Academic publishers have maximized profits from college textbooks by setting high prices to recoup their investment and to offset limited sales.
And oligopolists may be able to keep profits up by setting high prices and nurturing reputations for being friendly to their rivals.Yet some economists are still wary of game theory, despite the insights it has brought.
The search for used cars is inherently more time consuming, as each car is unique, making comparison shopping much trickier, and used cars, for dealers, are depreciating assets, setting high prices to begin with and randomly reducing the price over time as the car sits on the lot.
The lack of competition for these medicines may have resulted in pharmaceutical companies setting high prices.
If they cooperate, both are able to set higher prices, leading to higher profits.
We sometimes encourage our sellers to set higher prices, if that's what their business needs.
Suppliers consistently set higher prices for existing consumers compared with those who have switched.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com