Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 16 October 2019

Abstract and Keywords

Different approaches to pricing are used in different industries. This article explores the question of why this disparity in pricing mechanisms exists and persists – even among markets that often appear superficially very similar. It defines the concept of a pricing modality, the way that buyers, sellers, and intermediaries interact in a market to determine the price for a particular transaction. The article is organized as follows. Section 2.2 discusses three different approaches to explaining and understanding the reasons why particular modalities hold in particular markets. Sections 2.3 and 2.4 discuss two markets – pricing for television advertising and pricing of movie tickets in the United States – in which arguments from economic equilibrium are seemingly unable to explain the predominant pricing modalities. Section 2.5 discusses the rise of fixed pricing as the dominant modality for retail transactions. This history is interesting because of the extent to which fixed pricing has become the standard for ‘fairness’ in retail pricing. The final section summarizes the main points.

Keywords: price setting, pricing modality, television advertising, movie tickets, fixed pricing, retail pricing

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.