When fewer people are expected to visit the movies, movie theaters charge lower ticket prices. At the matinée, tickets are cheap, whereas evening shows, when many people are free to attend, are more expensive. Airlines' case is based on the season. Individuals are given discounts in order to fill vacant seats, while the cost of a ticket is high during the holiday season due to the strong demand for their services. Furthermore, individuals who purchase tickets in advance receive a discount (Lazarev 6). Varying charges for goods and services in the business spectrum on the auspices of age, time of the day, or the date of purchase are just a couple of samples of price discrimination.
Price discrimination is the charging varying prices on products and services basing on their willingness to purchase. This habit is practiced best when transparency of prices can nott be ascertained. Notably, some businesses may raise the cost of their products when the demand for the product or services is too high at the specific moment. In the cases highlighted above, raising and lowering of prices of goods and services is depended on the supply and demand of the products or services.
A prime example of price discrimination I have encountered is when I was to reopen school, and I had to buy some textbooks. When I went to the bookshop, the prices of the books had to my surprise tremendously shot up. Previously, when I had visited the shop when vacation had just started, the book was much cheaper than it was the second time I went to purchase it. I do not justify the increase in price during the time because when schools reopen a lot of requirements are needed which demands one to have enough money to buy them. However, increasing the price harms the student or parent more instead of helping him/her reduce the pain of the financial pinch.
Work Cited
Lazarev, John. "The welfare effects of intertemporal price discrimination: an empirical analysis of airline pricing in US monopoly markets." New York University (2013).
