Companies Grant Discounts
| Type | Citation | Sources | Views | Words | Pages | Essay # |
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| Term Paper | None | 0 | 43 | 388 | 1 | 31175989 |
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Excerpt from Term Paper:
.... movie and museum tickets at all. The availability of such discounts will no doubt encourage these groups to go venues that give special offers to their select group, as opposed to those venues that do not.
Railroad travel is a particularly interesting case of discounting, because while gradated fares affect all customers, depending on when they travel, only seniors and students pay the same low fare, even during peak commuting hours. Presumably, these groups have some choice in whether they travel by rail during peak hours, as opposed to adult commuters who must travel to their places of employment at a particular time. Non-working students and adults are more elastic in their demand for rail transport than working adults in terms of how and when they travel.
According to the article, this type of discounting is possible because transportation companies possess an element of monopoly power. When traveling by rail and most of the consumers lack a certain element of choice, except for the discounted groups, thus the non-discounted groups are unlikely to protest that they are being taken advantage of by the rail road, because they have no choice to travel other than during peak hours. However, other
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