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In behavioral economics, time preference (or time discounting, [1] delay discounting, temporal discounting, [2] long-term orientation [3]) is the current relative valuation placed on receiving a good at an earlier date compared with receiving it at a later date. [1] Applications for these preferences include finance, health, climate change.
High–low pricing (or hi–low pricing) is a type of pricing strategy adopted by companies, usually small and medium-sized retail firms, where a firm initially charges a high price for a product and later, when it has become less desirable, sells it at a discount or through clearance sales. [1]
A company chooses to pursue one of two types of competitive advantage, either via lower costs than its competition or by differentiating itself along dimensions valued by customers to command a higher price. A company also chooses one of two types of scope, either focus (offering its products to selected segments of the market) or industry-wide ...
Some argue that the only reason for discriminating against future generations is that these generations might cease to exist in the future. Thus the rate of time preference should equal zero since the probability for such a catastrophic event is so low (assumed to be 0.1% per year). [8] This infers that there is equal weight given to all ...
When the dominant companies in an oligopoly compete on price, inter-temporal price discrimination (charging a high price initially, then lowering it over time) may be adopted. [29] Price discrimination can lower profits. For instance, when oligopolies offer a lower price to consumers with high price elasticity (lower disposable income) they ...
A changeable prices menu at a fast food stand on Emek Refaim Street in Jerusalem. Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands.
Examples of bank holding companies include JPMorgan Chase & Co., U.S. Bancorp and Citicorp. A bank holding company is a corporate entity that owns a controlling interest in one or more banks.
A firm cannot charge a higher price if products are good substitutes, conversely as a product deviates from others in the segment producers can begin to charge a higher price. The lower non-cooperative equilibrium price the lower the differentiation. For this reason, firms might jointly raise prices above the equilibrium or competitive level by ...