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Assignment:
Strategic Pricing Examples
a) You attended a Twins' ball game last spring. Getting into a discussion with the person sitting next to you, you discovered that you paid less for your ticket than your ' neighbor paid. This was not surprising, since you had gotten a student discount!
i) What type of strategic pricing is at work here? Explain.
ii) Why is the concept of price elasticity of demand important for this type of pricing practice?
b) You buy a $100 season pass to the Mega Dinosaur Waterfall Putt-Putt (MDWPP) golf course in Myrtle Beach, South Carolina. The pass grants you unlimited and free access to MDWPP for the year.
i) What type of strategic pricing is this? Explain.
ii) How might this pricing allow MDWPP to capture additional consumer surplus as pro?t, as compared to not offering a pass and simply charging a price per visit?
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