Employ your knowledge of price discrimination to discuss why airline choose to price in the manners that they do

Each person must make two posts: an original response to the question and one response to someone else’s post or two responses to other people’s posts. You will be graded on the thoroughness of your answer, specifically how well you connect what you learned in a given section and the discussion question. Each discussion assignment is equally weighted in the final grade calculation.

Assignment:

Read the following article about airline pricing mechanisms and discuss the implications of what you learned.

http://www.dailybreeze.com/general-news/20130629/airlines-reveal-ticket-pricing-strategies

Questions/Discussion Points:

Employ your knowledge of price discrimination to discuss why airline choose to price in the manners that they do. Especially consider the element of time in your discussion.
Would you characterize the airline market as perfectly competitive, oligopolistic, monopolistically competitve, or a monopoly? Why?
Explain the differences between larger air carriers and their pricing mechanism versus the low-cost airline services. Why do you think the low-cost airlines choose to set prices as they do?