14,100 research outputs found

    Illustrations of Price Discrimination in Baseball

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    Price discrimination of this nature, focused on differing degrees of quality, bundled goods, volume discounts, and other forms of second-degree price discrimination, is commonplace in MLB. Indeed, it is safe to say that every single MLB ticket is sold under some form of price discrimination. As teams grow increasingly sophisticated in their pricing strategies, price discrimination is becoming more precise, more wide-spread, and more profitable, while at the same time providing for more opportunities for more fans to find tickets at a price they are willing to pay. Unlike a baseball game, where one team must lose and one must win, price discrimination allows for win-win economic outcomes for teams and fans alike.price discrimination; bundling; variable pricing; dynamic pricing; secondary ticketing; two-part tariff; loaded ticket

    State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines

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    The modern air transport industry is highly competitive. To survive in the market, the implementation of a successful marketing strategy is fundamental. In particular, an effective pricing policy has become crucial for airlines to remain profitable. Correspondingly, the different types of airline in the market have also established very distinct pricing policies. The present study is based on a literature review and presents the state of the art of pricing policy in air transportation. The aim is to compare and discuss the pricing strategies of network carriers and low-cost airlines. Special attention is paid to Revenue Management, which is a very important management tool used by airlines to take advantage of the differences in willingness to pay of passengers. The pricing policy, however, depends on the overall business strategy of the airline. Results show many differences, resulting from the fact that these two types of airline are characterized by very different fundamental business models and, correspondingly, also target groups. Since network carriers and also low-cost airlines have adjusted their pricing strategies lately, these recent developments will be discussed as well. This paper adds to the knowledge of this topic because it presents the most up-to-date and complete study on pricing regarding network carriers vs. low-cost airlines.A moderna indústria do transporte aéreo é altamente competitiva. Para sobreviver no mercado, a implementação de uma estratégia de marketing bem-sucedida é fundamental. Em particular, uma política de preços eficaz tornou-se crucial para as companhias aéreas continuarem lucrativas. Os diferentes tipos de companhias aéreas no mercado também estabeleceram políticas de preços muito distintas. O presente estudo baseia-se numa revisão da literatura e apresenta o estado da arte da política de preços no transporte aéreo. O objetivo é comparar e discutir as estratégias de preços de companhias aéreas de linha e companhias aéreas de baixo custo. Atenção especial é dada à Gestão de Receitas (Revenue Management), que é uma ferramenta de gestão usada pelas companhias aéreas para aproveitar as diferenças na disposição de pagar dos passageiros. A política de preços, no entanto, depende da estratégia geral de negócios da companhia aérea. Os resultados mostram muitas diferenças, resultantes do facto de que esses dois tipos de companhias aéreas são caracterizados por modelos de negócios fundamentais muito diferentes e, correspondentemente, também grupos-alvo. Como as operadoras de rede e também as companhias aéreas de baixo custo ajustaram as suas estratégias de preços ultimamente, esses desenvolvimentos recentes também serão discutidos. Este documento contribui para o conhecimento deste tópico, pois apresenta o estudo mais atualizado e completo sobre preços de companhias aéreas de linha versus companhias aéreas de baixo custo.info:eu-repo/semantics/publishedVersio

    An examination of ongoing trends in airline ancillary revenues

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    The airline industry seems permanently embedded in producing thin margins and continuously combatting downward pressure on yields. To perpetuate the problem, the industry remains eclipsed with high cost structures and low barriers to entry. However, a new sizzling concept continues to counterbalance these effects in the form of ancillary revenues. Globally, these revenues have increased by 121% from 2010 to 2014 – and the trend is set to continue as carriers are quickly implementing structural changes to accommodate these revenues streams. This paper examines the performance of the two core classifications of ancillary revenues, which are unbundled products and commission based income. It also investigates the willingness of passengers to pay for these services together with what type of ancillary items are acceptable at a particular price point. The study found that passengers value a narrow range of perceived ‘necessity’ products and services such as food and drink, checked baggage and seat assignment as opposed to perceived ‘optional’ unbundled or commission based products/services. It also found significant differences in WTP for specific ancillary services based on carrier type (FSC/LCC/Charter), length of flight (long and short haul) and journey purpose (business, leisure, VFR)

    Heuristic optimization of clusters of heat pumps: A simulation and case study of residential frequency reserve

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    The technological challenges of adapting energy systems to the addition of more renewables are intricately interrelated with the ways in which markets incentivize their development and deployment. Households with own onsite distributed generation augmented by electrical and thermal storage capacities (prosumers), can adjust energy use based on the current needs of the electricity grid. Heat pumps, as an established technology for enhancing energy efficiency, are increasingly seen as having potential for shifting electricity use and contributing to Demand Response (DR). Using a model developed and validated with monitoring data of a household in a plus-energy neighborhood in southern Germany, the technical and financial viability of utilizing household heat pumps to provide power in the market for Frequency Restoration Reserve (FRR) are studied. The research aims to evaluate the flexible electrical load offered by a cluster of buildings whose heat pumps are activated depending on selected rule-based participation strategies. Given the prevailing prices for FRR in Germany, the modelled cluster was unable to reduce overall electricity costs and thus was unable to show that DR participation as a cluster with the heat pumps is financially viable. Five strategies that differed in the respective contractual requirements that would need to be agreed upon between the cluster manager and the aggregator were studied. The relatively high degree of flexibility necessary for the heat pumps to participate in FRR activations could be provided to varying extents in all strategies, but the minimum running time of the heat pumps turned out to be the primary limiting physical (and financial) factor. The frequency, price and duration of the activation calls from the FRR are also vital to compensate the increase of the heat pumps’ energy use. With respect to thermal comfort and self-sufficiency constraints, the buildings were only able to accept up to 34% of the activation calls while remaining within set comfort parameters. This, however, also depends on the characteristics of the buildings. Finally, a sensitivity analysis showed that if the FRR market changed and the energy prices were more advantageous, the proposed approaches could become financially viable. This work suggests the need for further study of the role of heat pumps in flexibility markets and research questions concerning the aggregation of local clusters of such flexible technologies.Comisión Europea 69596

    Analysis of Willingness to Pay for Ancillary Revenue of Full Service Airline (The Case of Garuda Indonesia)

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    Airlines are facing challenges from high cost structures and intense competition. This has made airlines universally look for opportunities to generate ancillary revenue, additional income apart from their main sources, including Full Service Carriers (FSC). Measuring consumer’s willingness to pay is pivotal in pricing and estimating ancillary revenue demand. This study analyzes whether customer’s type of journey, purpose of journey, length of flight, and type of flight class have an impact on willingness to pay (WTP) of Garuda Indonesia’s ancillary revenues which comprises of unbundled products and commission-based income. This paper uses data from a survey to Garuda Indonesia’s customer and follows quantitative studies to identify and describe the relationship between the WTP of Garuda Indonesia’s ancillary revenue and all variables involved. The study found that passengers value more the unbundled products. It is also found differences in WTP for particular ancillary products and services based on purpose of journey, length of flight, and type of flight class. Keywords: Ancillary Revenue, Willingness to Pay, Type of Journey, Length of Flight, Journey Purpose, Type of Cabin Class, Full Service Carrier

    Future electricity market structure to ensure large volume of RES

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    The article define set of rules for future Electricity market structure, taking into account network codes, legislation and directives to ensure RES integration targets and Energy Union Dimensions in term of a fully integrated internal energy market and transition to a long lasting low-carbon society. Presented research studies are based on new way of power system operation development, namely Web-of-cell concept, of FP7 IRP ELECTRA. It’s aiming to ensure conceptual E-market design and future power system 2030+ control solutions

    Future electricity market structure to ensure large volume of RES

    Get PDF
    The article define set of rules for future Electricity market structure, taking into account network codes, legislation and directives to ensure RES integration targets and Energy Union Dimensions in term of a fully integrated internal energy market and transition to a long lasting low-carbon society. Presented research studies are based on new way of power system operation development, namely Web-of-cell concept, of FP7 IRP ELECTRA. It’s aiming to ensure conceptual E-market design and future power system 2030+ control solutions
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