One Example of Price Discrimination Occurs in the Airline Industry

question 43

Essay

One example of price discrimination occurs in the airline industry as airlines typically set a high price for business people and a low price for vacationers. Use this example to demonstrate and graphically illustrate the rationale of airlines' price-discrimination pricing strategy.

---

Definitions:

Blindsight

A phenomenon in which individuals with certain types of brain damage can respond to visual stimuli without consciously perceiving them.

The Cocktail Party Effect

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when a person can focus on a single conversation in a noisy environment.

Text Message

A short message transmitted between mobile phones or other electronic devices.

Parallel Processing

A computational method where multiple processes run simultaneously, often used to increase speed and efficiency in computer systems.