tag:blogger.com,1999:blog-2503392532090682825.post6524764064947881265..comments2023-06-13T05:05:28.886-04:00Comments on Economics of Information: Collective Buying Power: The Effect on Small BusinessesErik Brynjolfssonhttp://www.blogger.com/profile/01117552073319813366noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2503392532090682825.post-69004475512277031332011-01-09T11:49:02.008-05:002011-01-09T11:49:02.008-05:00It seems to me that Groupon today represents an ex...It seems to me that Groupon today represents an example how third degree price discrimination may help companies to increase their profits and also improve consumers wellbeing (surplus). Coupons help companies to acquire customers who are more price sensitive and would not have bought the product/service without the discount. At the same time, clients whose reservation price is above the regular price for the product do not care so much about coupons, which is proven by the fact that 90% of customers are new. I believe that is a really good example of how the web, where everything can be tracked and calculated allows for the textbook models to be applied in practice. Here is the link to the graphs which illustrates the aforementioned model: http://picasaweb.google.com/lh/photo/9-oRQzXOUfudDJvsLn6Lcw?feat=directlinkAnonymoushttps://www.blogger.com/profile/15815164112863448439noreply@blogger.comtag:blogger.com,1999:blog-2503392532090682825.post-68689773641522718792010-12-20T21:24:57.915-05:002010-12-20T21:24:57.915-05:00Where can I find more information from this study?...Where can I find more information from this study?Jimmynoreply@blogger.com