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40 Examples of Price Economics (2024)

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Price economics is the practice of modeling prices in markets including the price of goods, services and assets. This includes market structures, forces and behaviors that shape prices in markets. The following are common examples of price economics.
Supply and demand
Market forces that are responsible for pricing in a competitive market.
Price elasticity
How much supply and demand change when price changes.
Market power
The ability of a buyer or seller to influence prices.
Market structure
The number and size of buyers and sellers in a market.
A single seller that dominates a market such that they can control prices.
Perfect competition
A market of many small buyers and sellers that individually have no influence over prices.
Price sensitivity
How much a buyer cares about price for a particular good or service.
Price discrimination
Sellers that find ways to charge price sensitive customers less and price insensitive customers more e.g. coupons.
Predatory pricing
Pricing below cost to hurt the competition.
Selling goods cheaply in a foreign market.
When sellers agree to set prices at some level. An anti-competitive practice.
Product differentiation
Products that are unique in the minds of customers such that they may command a unique price.
Goods that are viewed as indistinguishable by consumers such that they will buy on price alone.
Price wars
Price battles between sellers.
Bidding wars
Purchasing battles between buyers.
Product bundling
Discounts for packages of services or products.
Dynamic pricing
Prices that are set in real-time based on behavior, competition or demand.
Peak pricing
Higher prices during peak demand. Also known as surge pricing.
Loss leader pricing
A cheap price designed to attract customers.
Penetration pricing
A cheap price designed to build market share.
Skimming pricing
A high initial price designed to target customers who want to be first to try a new thing.
Psychological pricing
Pricing based on customer perceptions.
Cost-plus pricing
Sellers that base their prices on their costs plus some markup.
Price leadership
A firm that competes by consistently offering the lowest prices, often based on lower costs and greater scale.
A market based on competition between buyers for a product with limited supply.
Market clearing price
The price at which all supply will be sold.
Substitution effect
The ability of buyers to substitute other goods when prices change.
Law of diminishing marginal utility
Consumers will only buy so much, even if the price goes very low.
Price gouging
Increasing prices excessively in a time of crisis or shortage.
Price umbrella
A price set by a dominant competitor that influences the prices of all sellers.
Bargaining power
The power of buyers and sellers to negotiate prices.
Customary price
A long established price. Consumers may resist change to a customary price.
Sticky price
A price that consumers strongly prefer such that demand drops if you change it.
Snob effect
Luxury consumers that abandon a previously high priced brand when it is discounted too often.
Benchmark price
A recent price that buyers and sellers may reference.
Too cheap to meter
A resource that is so inexpensive that it can be offered on a flat rate basis for somewhat unlimited consumption.
Broad and sustained price increases across an economy.
Broad and sustained price decreases across an economy.
Superior good
A good that is demanded more as income rises.
Inferior good
A good that is demanded less as income rises.

Price Economics

This is the complete list of articles we have written about price economics.
Bargaining Power
Competitive Market
Customary Pricing
Inferior Good
Law Of Demand
Market Forces
Market Value
Perfect Competition
Predatory Pricing
Price Competition
Price Floor
Price Optimization
Price Sensitivity
Price Stability
Price Umbrella
Price War
Pricing Strategy
Relative Price
Snob Effect
Sticky Prices
Superior Good
Supply & Demand
Too Cheap To Meter
Veblen Goods
Willingness To Pay
More ...
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The definition of supply with examples.

Supply And Demand

An overview of supply and demand with examples.

Pricing Strategy

An overview of common pricing strategies.

Price Discrimination

A list of price discrimination strategies.

Price War

An overview of price wars.

Premium Pricing

A definition of premium pricing with examples.

Penetration Pricing

A definition of penetration pricing with examples.

Variable Pricing

The definition of variable pricing with examples.

Channel Pricing

A definition of channel pricing with examples.

Value Pricing

The definition of value pricing with examples.

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