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Sample cover letter for Full Time position at Quant Connect
Business Analyst
By doing this we separate the travellers into two group, namely business travellers and tourist. Business travellers are the ones who prefer to return home before weekends whereas tourist look for the cheapest tickets and are flexible with their dates. Therefore, this can function as price discrimination
Arbitrage is not possible as ticket specifies the name of the traveller. Hence no person can sell the ticket.
a.Selling laser printers along with coupons that can be sent to the manufacturer for a $10 rebate. [0.5 mark]
Answer:
This is a form of price discrimination as we are splitting the market into price sensitive and non price sensitive customers. Only price sensitive customers will send the $10 coupon for rebate.
Arbitrage can be done in this case as a reseller could send in the rebate coupons and sell the laser printer at price below the retail price of manufacturer. This can be prevented by putting a maximum limit to the number of laser printers sold to an individual.
b.Offering temporary price cuts on anti-virus software product. [0.5 mark]
Answer:
This is a form of Intertemporal price discrimination as the consumers who buy the antivirus product are divided into two groups, i.e. the price sensitive and non- price sensitive customers. The price sensitive customer could buy the anti virus software more readily at a cheaper price. They could buy the anti virus software for all of their PC’s whereas a non price sensitive customers only buys the anti virus software if he needs it at that time.
Arbitrage is possible in this case as reseller could buy and then later resell the anti-virus product. However, this can be prevented by associating every antivirus product with a particular PC at the time of purchase. Hence arbitrage wont be possible.
