https://market.subwiki.org/w/index.php?action=history&feed=atom&title=Periodic_discounting 2026-06-04T21:25:54Z Revision history for this page on the wiki MediaWiki 1.41.2 https://market.subwiki.org/w/index.php?title=Periodic_discounting&diff=112&oldid=prev 2009-03-21T19:06:11Z

<p>Created page with &#039;{{pricing strategy}} ==Definition== &#039;&#039;&#039;Periodic discounting&#039;&#039;&#039; is a strategy whereby a <a href="/w/index.php?title=Seller&amp;action=edit&amp;redlink=1" class="new" title="Seller (page does not exist)">seller</a> chooses to vary the price of a good in an easy-to-predict pattern over time, d...&#039;</p> <p><b>New page</b></p><div>{{pricing strategy}}<br /> <br /> ==Definition==<br /> <br /> &#039;&#039;&#039;Periodic discounting&#039;&#039;&#039; is a strategy whereby a [[seller]] chooses to vary the price of a good in an easy-to-predict pattern over time, done in order to maximize profits by selling to each potential buyer at a price closest to the buyer&#039;s [[reservation price]].<br /> <br /> A strategy such as [[price skimming]] (where the price falls steadily with time) is an example of periodic discounting.<br /> <br /> ==Motivation behind periodic discounting==<br /> <br /> Periodic discounting can be viewed as a form of [[price discrimination]]. More specifically, it is a form of [[third-degree price discrimination]] involving [[indirect segmentation]]. Third-degree price discrimination refers to a strategy of using group characteristics of different kinds of consumers/buyers to try to sell the same good to them at different prices: the buyers willing to pay more end up paying more, and the buyers who would be unwilling to pay high prices can pay the lower price.<br /> <br /> ==Relation with other pricing strategies==<br /> <br /> * [[Random discounting]]: Also known as variable price merchandising, this strategy seeks to randomly vary prices so that price-sensitive customers buy the good when the price is low while price-insensitive customers tend to, on average, buy the good when the price is high.<br /> * [[Second-market discounting]]: This is a form of [[third-degree price discrimination]] that involves direct segmentation.<br /> <br /> ==References==<br /> <br /> ===Journal references===<br /> <br /> * {{paperlink|TellisPricing}}</div>

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