Questions tagged [pricing]

81 questions
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What are some different methods for pricing electricity?

I know that in New Zealand, the wholesale price of electricity is set using a spot market, whereby every half hour, each of the electricity producers provide offers for how much electricity they can supply at each price level, and then when the…
dwjohnston
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Why doesn't Barnes and Noble just lower its prices?

For my birthday, I wanted a cookbook. So I went to Barnes and Noble and selected it: $40. Before I got the register I checked it on Amazon: $20. I started price matching every single cookbook I was interested in and collectively, i could save 60%…
Danny Rodriguez
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What's the name of this pairwise price-setting scheme?

Two siblings inherit equal shares of a house. To decide who gets to live in it, they each bid what they think the other half is worth. The person with the higher bid gets it, and pays the other sibling halfway in between the bids. Therefore,…
4
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1 answer

Why has Apple increased app store prices in the UK?

Apple have recently announced an increase in app store prices, ostensibly due to the weakening of the pound following the Brexit vote and its fallout. Why has apple done this when the marginal cost of production of an (already developed) app is…
James
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Why do some prices contain a sequence of a digit repeated several times?

I know about the psychology behind prices that end in 9 or 99, but I'm starting to notice that some prices contain the same digit (not 9) repeated two, three or even four times. For example, in this week's leaflet a popular German supermarket is…
Ilmer
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The Saturn pricing model, did it work?

Has there been a post-mortem on the Saturn pricing model? For those who do not remember, in the 1990s GM sponsored a new car model, the Saturn, which featured "no haggle" pricing. The car would be sold at one fixed price depending on…
Lassie Fair
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Where do economists look for reliable commodity prices for dairy products?

I would like to know the market commodity price of cream cheese. I know you can look up the price of gold in the Wall Street Journal. Where can I get info on dairy products like cream cheese?
Mr. A
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What is the correct way to calculate a selling price from margin and a cost?

There seems to be two formula to calculate a selling price. The first formula that I came upon would be Cost * (1+Margin) = Selling price Example : 10 * (1+0.25) = 12.5 However, a lot of people uses the following : Cost / (1 - Margin) = Selling…