How might we know that a pricing strategy is done

Assignment Help Microeconomics

Reference no: EM132194215

Question - Read the article CORD-CUTTING STILL DOESN'T BEAT THE CABLE BUNDLE from WIRED Magazine

a. Towards the end of the Follow the Money section, the author writes, It turns out, oddly enough, that things cost money. One of the main arguments for cable bundling is that the revenue generated from the high-viewership channels (e.g. ESPN) will cover the costs for the low-viewership channels (e.g. The Cat Channel). This would suggest that bundling is done for cost purposes.

If we accept that a part of bundling is done for cost purposes, does it preclude the use of bundling for price discrimination also? How might we know that a pricing strategy is done for cost purposes versus discriminatory purposes?

b. The author lists several streaming plans as examples of alternatives to the traditional cable model. Do you think that such plans can remove the potential for price discrimination that bundling provides? Explain.

Reference no: EM132194215

Questions Cloud

Describe the stereotypes associated : Describe the stereotypes associated with this minority group in the US.

Discuss the acronym creek : Discuss the acronym CREEK. What do the latters means and how are they relevant to negotiation?

Articulates the alignment issues of the business problems : Why is it important to distinguish between the use of primary and secondary data? What are the advantages and drawbacks of using secondary data?

Describe an option for addressing the issue : Explain the issues you have selected. Why is it a problem? What fuels the issue? Who does it impact and what specific impact does it have on patient care

How might we know that a pricing strategy is done : If we accept that a part of bundling is done for cost purposes, How might we know that pricing strategy is done for cost purposes versus discriminatory purposes

What is the basic issue and the immediate issue : Determine which rational decision-making theory is applicable?what are ethical issues? and suggest how it can be solved?

Discuss consumption subcultures : Identify the two to three concepts you would like to apply to your current or future work setting and how you will go about implementing them.

Evaluate your ability to write a critical analysis essay : Evaluate your ability to write a critical analysis essay that is based on the purposeful behavior of employees and that is logical, valid, and credible.

Determine the rate of return on this investment : An investment of $12,000 today will pay 6 yearly payments of $5,000 each. Determine the rate of return on this investment to the second decimal place

User Account

All Pages