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Economics extended essay what economic theory do i use?


lauren1111

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Hi

I'm wanting to do an extended essay on the price discrimination in hotels, possibly comparing how tourists are treated differently than business people. For example, tourists tend to book in advance whereas business people may book later. Or maybe comparing price elasticities of different types of rooms. I'm a little bit lost on how to approach this subject and what economic theories to use?

Any help/advice would be great!

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From the top of my head:

- Spend some time explaining which market structure the hotels you are considering fall under - which gives them the price making ability and therefore the ability to price discriminate.

- The kind/types of price discrimination and which is applicable to your situation.

- You won't/shouldn't be able to make a quantitative analysis of elasticity, but can make a qualitative comparison. You can also consider the factors that may be affecting elasticity.

- Include finding income bracket in your survey (hopefully you are doing one) and the price paid by the customer and look to see if there are correlations.

But first you must come up with a specific research question before proceeding with anything else.

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