"WESM: The electricity market has been in the news lately‚ with the huge spike in the price of electricity for the customers of Meralco (70 percent of Luzon). My knowledge of this market amounting to not much‚ I decided to bone up on it before adding my voice to the cacophony of opinions‚ and recommendations. Here’s what I found: The Epira (Electric Power Industry Reform Act) of 2001 mandated the Department of Energy (DOE) to establish the Wholesale Electricity Spot Market (WESM) that would “facilitate
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wether or not regulation was a beneficial as it was supposed to be. The results determined that the assumptions about regulation were proven to be less economically beneficial than was originally supposed. Although it was supposed‚ that averaging the prices of regular routes to cover less economically viable routes would enable airlines to run these lines to smaller rural towns in need‚ airlines usually abandoned them or sold them to smaller private lines. Despite the monopoly‚ the large crafts were
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has identified five forces that determine the intrinsic long-run attractiveness of a market segment A. Threat of intense segment rivalry - a segment is unattractive if it already contains numerous‚ strong‚ or aggressive competitors - frequent price wars‚ advertising battles‚ new-product introductions - example: cellular phone industry B. Threat of new entrants - a segment’s attractiveness varies with the height of its entry and exit barriers - high entry barriers and low exit barriers –
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meals and in-flight movies etc.‚ since prices were mandated by the Civil Aeronautics Board. In the post-de-regulation era‚ this rivalry has taken on the form of severe price competition‚ with airlines ruthlessly undercutting each other with fare promotions. There are a number of airlines making the airline industry fairly crowded. Even though the 3-firm concentration in 1992 was 50%‚ and the 8-firm concentration was 92%‚ the fact that the airlines competed on price made the industry much more competitive
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possible outcome is to increase the price of ticket. Adjust to the advent of information age. Taking advantages of advanced technology means less cost for labor and infrastructure and less time incurred to complete the same job. Say‚ easyJet allows and encourages its customers to buy tickets online cutting down on administrative costs. From the standpoint in the long run‚ it will reduce the cost of airline industry. And in turn‚ they can reduce their price to maintain advantageous stage. Some
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analyst and principal of R.W. Mann & Co. (ebscohost‚ 2007). It is further stated in the article the reason airlines like Southwest and JetBlue are not affected by the downward spike is because they are the price leaders and they are the cost leaders. These airlines can make money with lower prices‚ while other airlines are not able to. Since these airlines are the cost leaders they continue to grow during ever during an economic downturn. Other airlines have to pull back from higher pricing to keep
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The Airline industry provides a very unique service to its customers. It transports people with a high level of convenience and efficiency that cannot not be provided by any other industry or substitute. Airline companies pride themselves on the way they treat their customer during the flight. They have things such as food‚ drinks‚ entertainment‚ and a welcoming staff. The service of transportation is provided in other industries but the airline surpasses all of them when it comes to timeliness.
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landscape is more competitive and more complicated than ever before. With revenue management’s recognized contribution to the industry and the majority of hoteliers employing revenue management as part of their overall hotel discipline now is the time to focus on core competencies that incorporate both strategic and tactical skills and initiatives. The paper presents a literature review of the key concepts of hotel revenue management (RM) and current state-of-the-art of its theoretical study. The
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Evaluate the view that‚ because price discrimination enables firms to make more profit‚ firms‚ but not consumers‚ benefit from price discrimination Price discrimination is where a firm changes different consumers different prices for the same service. Consumer Surplus is the difference between what the consumer is willing to pay and the price they actually have to pay. In all three degrees of price discrimination firms are able to make more profit and eliminate any excess capacity they
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What Is Revenue Management? The science and expertise of forecasting immediate consumer demand at the micro-market stage when optimizing cost and accessibility of your goods is called as revenue Management. The implementation of RM philosophy is indefinite‚ and has the prospective to yield remarkable stages of revenue. Enterprises that have used RM procedures have seen profits rising greatly by 7 percent exclusive of incorporating considerable sum of capital overheads‚ providing outcome in a revenue
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