Price discrimination in the Russian market of telecommunication

Ing. Aliya Bilyaeva

Master's thesis

Abstract:

Price discrimination is really significant field in the economy theory and it also very useful in practise when we speak about profit maximization in the company with market power. Price discrimination was also very attractive for different economists. For example, in 1987 Stigler suggest price discrimination definition. According to him it exists “when two similar products are sold at prices that are in different ratios to their marginal costs”. In this diploma thesis we would cover such fields as first, second and third degree price discrimination, conditions necessary for price discrimination, examples of price discrimination, also we would research the Russian telecommunication market, application of price discrimination in telecommunication company and as a concluding part we would give a recommendation to a business company. The main objective of my thesis is to study theoretical aspects of price discrimination, research the pricing policy based on discrimination and relations between economic agents in the process of implementation in the markets of final goods. The aim of the work is to determine the influence of price discrimination on different markets and find a solution to improve it. The goal of my thesis is to determine and study industries and business companies that using price discrimination and how by setting different prices for the same product business can increase its total sales revenues.

Abstract:

Price discrimination is really significant field in the economy theory and it also very useful in practise when we speak about profit maximization in the company with market power. Price discrimination was also very attractive for different economists. For example, in 1987 Stigler suggest price discrimination definition. According to him it exists “when two similar products are sold at prices that are in different ratios to their marginal costs”. In this diploma thesis we would cover such fields as first, second and third degree price discrimination, conditions necessary for price discrimination, examples of price discrimination, also we would research the Russian telecommunication market, application of price discrimination in telecommunication company and as a concluding part we would give a recommendation to a business company. The main objective of my thesis is to study theoretical aspects of price discrimination, research the pricing policy based on discrimination and relations between economic agents in the process of implementation in the markets of final goods. The aim of the work is to determine the influence of price discrimination on different markets and find a solution to improve it. The goal of my thesis is to determine and study industries and business companies that using price discrimination and how by setting different prices for the same product business can increase its total sales revenues.

Keywords

Application, arbitrage, barrier, business, conditions, degree, discrimination, discounts, export, first, geographic, goods, second, market, mobile, monopoly, oligopoly, power, price, related, Russian, sales, segmentation, set, telecommunication, tariff, third, time, quantity, quality.

Language used: English

Date on which the thesis was submitted / produced: 18. 4. 2016

Thesis defence

• Date of defence: 23. 6. 2016
• Supervisor: Ing. Petr Mach, Ph.D.
• Reader: Mgr. Ing. Petr Wawrosz, Ph.D.

University of Finance and Administration

Master programme / field:
Economics and Management / Business Management and Corporate Finance