engleski

Theoretical analysis of partitioned prices

For a long time, economic science and empirics suggest that a perceived price has an important role within consumers’ decision-making. Economic discourse is based on the idea that a perceived magnitude of a price may or may not be equal to a nominal magnitude of a price. From this bipolarity arises interesting concept, known in literature as partitioned price. Partitioned price (PP) presents a modern strategy of attracting consumers by dividing all-inclusive price of product/services on the base price and the additional surcharges such as shipping and handling, various fees, state taxes, etc. Causal relationships that define consumers’ and suppliers’ behaviour are demonstrating price complexity and stress its importance as an essential feature of the market. Hence, the aim of this paper is to evaluate the concept of PP theoretically, as well as to expose it to possible challenges in microeconomic analysis in order to raise questions and stimulate new research patterns.

partitioned price/s; microeconomic aspect; theoretical analysis; price complexity; market strategy; industrial organization

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