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Friday, July 28, 2006

Price Discrimination Cell Discovered

Marginal Revolution reports on price discrimination:

Price Discrimination Thermometer, by Alex Tabarrok on Economics: When customers call Cingular threatening to switch to another firm or asking for discounts operators see a handy thermometer that tells them the life time value (LTV) of the customer to the company.  The higher the meter reading the more discounts the operator is allowed to offer the customer.   The Consumerist has the details including excerpts from company documents explaining the system.

    Posted by on Friday, July 28, 2006 at 02:10 PM in Economics | Permalink  TrackBack (0)  Comments (0)

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