Second-Degree Price Discrimination of the Modern Payment Terminal Services

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School of Business | Bachelor's thesis

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Mcode

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en

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18

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Abstract

This paper introduces price discrimination, especially second-degree price discrimination, and applies its theory in the context of modern payment terminal services, where two service packages, one of iZettle’s and the other of OP Kassa, are analyzed. Theory part deals with price discrimination through quantity-discount packages and two-part tariff, where as in the analysis part we applie the two-part tariff model. In both parts, in theory and analysis part, we found that second-degree price discrimination is a profitable tool for pricing.

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Mustonen, Mikko

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