Buy Airline Tickets over the Weekend A recent study by economists Steven Puller and Lisa Taylor found that airline tickets purchased over the weekend were priced 5% lower on average. Why would airlines charge lower prices to customers making bookings on the weekend?
This is a price discrimination scheme. Weekday bookings tend to be for business travel and weekend bookings tend to be for tourist travel. Tourists tend to be more flexible in their travel plans and so are more elastic customers. The weekend price is a way to offer them discounts while reducing the risk of arbitrage from the business customers.
Economics
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An innovation cycle could be caused by
a. a decreasing capital stock b. a sharp increase in national income c. a climatic change d. a sharp increase in the pace of technological change e. a decrease in the demand for housing
Economics
Andrew Carnegie, Steven Jobs and Sam Walton were all innovators who are also considered _____________.
Fill in the blank(s) with the appropriate word(s).
Economics