This will be my last and final post on economics. For a change, im not going to review articles. Instead, i will be commenting on the previous post. Yup.

Local cinemas have COLLUDED to launch this promotion. EVERYWHERE THE SAME.NO NEED TO LOOK FOR CHEAPER BARGAINS. This means MONOPOLY POWER

Actually, both examples given in the post were promotions by the same company: Cathay. This doesn't show ccollusion/cartelling between firms.

·The movie ticket cannot be resold from one market to another because they check your ID cards.

Actually, it is possible to resell these tickets. This is because identity cards are needed only when purchasing the ticket.Thus, a person who is eligible to buy the ticket might be able to purchase the ticket and resell it to someone else. This is of course assuming that the ticket issued is a similar ticket to the normal tickets, and not specially marked.

Since the primary aim of price discrimination is to generate more revenue and higher profits for the monopolist than when a uniform price is charged, we should not be overly excited by such promotions (i was not an economics student back then, which explains.)

The monopolist generating more revenue does not mean that we, as consumers, cannot gain from it too. Think of it this way: if we purchase the tickets at the specified time slots, we will only be paying $6, relatively lesser to the normal $8.50 we would normally pay. Do we not gain in this sense?

GV's price discriminations are only valid at cinemas where PED is less elastic (ulu places like jurong point, tiong bahru)

In actual fact, the PED at these places are price elastic, instead of inelastic. Let's think about it. If the PED at these places were price inelastic, then there would be no need for the cinema to reduce the price of the tickets, because it would lead to them making less profits. In actual fact, they should actually raise prices to increase their revenue. Thus, the fact that the cinemas offered cheaper prices at these places shows that demand at these places are actually price ELASTIC, and not inelastic.

Boon Pin ( I almost forgot to put my name )