Good example and explanation, thanks. Price discrimination fascinates me. I've found that there are a lot more discounts to be found here in Canada compared to in NZ, but you have to jump through more hoops to get them.
I suspect this is because there is a wider range of price elasticities in Canada (as the market is generally larger) so the gains the seller gets from price discrimination outweighs the relatively fixed costs of administrating these complex loyalty schemes and coupons.
That makes sense great point! It would be interesting to think about whether there is geographic dispersion in price discrimination - given that a lot of Canada has quite low population density!
Good example and explanation, thanks. Price discrimination fascinates me. I've found that there are a lot more discounts to be found here in Canada compared to in NZ, but you have to jump through more hoops to get them.
I suspect this is because there is a wider range of price elasticities in Canada (as the market is generally larger) so the gains the seller gets from price discrimination outweighs the relatively fixed costs of administrating these complex loyalty schemes and coupons.
That makes sense great point! It would be interesting to think about whether there is geographic dispersion in price discrimination - given that a lot of Canada has quite low population density!