Discuss frequent-flier and frequent-stay programs


Discussion:

In what respects are the following common practices subtle (or not-so-subtle) forms of price discrimination?

1. Frequent-flier and frequent-stay programs

2. Manufacturers' discount coupon programs

3. A retailer's guarantee to match a lower competing price. (Minimum 300 words, references APA formatted)

A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; and in summer, golf, tennis, and hiking. The resort's operating costs are essentially the same in winter and summer. Management charges higher nightly rates in the winter, when its average occupancy rate is 75 percent, than in the summer, when its occupancy rate is 85 percent. Can this policy be consistent with profit-maximization? Explain.

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Microeconomics: Discuss frequent-flier and frequent-stay programs
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