Advantages and Disadvantages of Differential Pricing Now, let’s get to the meat of the matter…you know, where the rubber meets the road. Many have been paid lots of money to perform studies concerning the upside and downside of differential pricing. After reading parts 1 and 2 and this 3rd and final installment on differential pricing,.
Real World Examples of Differential Pricing Differential pricing is very prevalent in the real world. Varian (1996, p. 12) indicates that differential pricing goes hand-in-hand with industries that encounter large fixed and shared costs. This would include the airline industry for example. Varian adds that differential pricing is evident in highly concentrated industries that.
You may well find this post simply more informational than inspirational…hopefully if nothing else, maybe some “fun” reading. I’m not here on this go around to convince you one way or another. I simply find this subject fascinating because it deals with one of the four basic tenets of marketing…pricing; more specifically, differential pricing. Before.