Wednesday, September 12, 2012

Community College and Group Pricing

The New York Times has an interesting article on a recent proposal by Santa Monica Community College to change their course pricing policy.  The change is similar to what economists call third degree price discrimination or group pricing.  The article says that courses in higher demand would have a higher price than courses with lower demand, or as economists we could think about this in terms of courses with a higher price elasticity of demand would have lower prices and courses with a lower price elasticity of demand would have higher prices.

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