Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The article titled Airlines Have Cracked the Fare Gamefor Now includes the following statement: U.S. airlines are testing a new secret weapon: passenger segmentation. So

The article titled "Airlines Have Cracked the Fare Gamefor Now" includes the following statement: "U.S. airlines are testing a new secret weapon: passenger segmentation. So far it seems to hit the mark, but executives likely overrate its firepower during bad times".Also, the following: "...better customer targeting will 'offset weakness in demand.' The idea is that more fare classes and narrower price gaps between them mean there will always be a cabin type to suit each flier's budget".According to the statements, the airlines use a form of:

a.first degree price discrimination.

b.second degree price discrimination.

c.third degree price discrimination.

d.two-part tariffs.

e.block pricing.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Regression Analysis And Other Multivariable Methods

Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg

5th Edition

1285051084, 978-1285963754, 128596375X, 978-1285051086

Students also viewed these Economics questions