1. economics for business chris mulhearn and howard r. vane

2. Seminar presentation: Consumer surplus & price discrimination Here’s some information about the demand for a product

3. D S Consumer surplus and price discrimination – a stylized representation Consumer surplus Producer surplus Charge some of the market $40 The remainder $20 For the 10,000 th unit: maximum price consumer is willing to pay is $30; minimum price producers want to receive is $14 = room to haggle & negotiate

4. Virgin Trains example “Travel outside of peak hours to find a cheaper ticket. For example, Friday evenings are the most popular time of the week to travel. If you can make your journey on Saturday morning instead, then you'll enjoy quieter trains at some of our best prices. Perfect if you fancy 40 winks in one of our comfy seats. On the London to Manchester route it can get busy on weekends when there's football on. If you travel when there are no teams from London and Manchester playing each other you'll find cheaper fares. The quieter times during the week tend to be between 10:30 and 14:30 or after 20:00. Or for really cheap tickets check the earliest and latest trains of the day.”

5. Other examples of price discrimination Other examples by time Different classes of travel Virgin to Australia this month – how much? £5,700 £3,622 £1,300 Virgin actually have 6 prices on offer per flight Seats at the cinema, theatre, football match Differential pricing in pubs: lounge v bar