Measure the degree of market power

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Reference no: EM133040740

Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Different customers pay varying process for essentially the same coach seat because some passengers qualify for discounts and others do not. Since the discounts aresubstantial in many cases, the customers who qualifies for a discount pays a significantly lower airfare

In order to impose price discrimination, managers in airline industry should be able to measure the degree of market power. Discuss TWO (2) methods that can be used to measure market power.

Reference no: EM133040740

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