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What Price Vertigo?

Published 03 Jan 2006
Reference 5342
Topic Marketing
Industry Entertainment
Region Europe
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Prizes & Awards

2016 Case Centre Best-selling Case in Marketing

Summary

The case uses the example of U2's 2005 world tour to investigate price differentiation in the context of entertainment industries, and particularly multi-pricing in a (capacity) constrained environment.

Teaching objectives

The objectives are: discussion of price differentiation dimensions, market segmentation, demand modelling, consumer surplus, price optimization with deterministic (linear) demand and various constraints (capacity, fairness), and the marginal revenue rule. The case can also provide an opportunity to build small pricing models using Excel solver.

Keywords
  • AR2006
  • AR0506
  • RD0306
  • PRICING
  • PRICE DIFFERENTIATION
  • PRICING WITH FIXED CAPACITY
  • SEGMENTATION
  • ENTERTAINMENT