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PRICE DISCRIMINATION BY NEGOTIATION: A FIELD EXPERIMENT IN RETAIL ELECTRICITY Online AppendixALeslie A. MartinJia Sheen NahBargaining scriptsThis Appendix provides details on the bargaining scripts
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How to fill out price discrimination by negotiation

01
Step 1: Research the market and understand the pricing structures of competitors.
02
Step 2: Identify your target customer segments and their willingness to pay.
03
Step 3: Determine the different levels of service or product offerings that you can provide.
04
Step 4: Develop a pricing strategy that offers tailored options to each customer segment.
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Step 5: Prepare negotiation tactics and techniques to effectively engage in price discussions.
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Step 6: Communicate the value proposition of your offering during negotiations.
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Step 7: Adapt the pricing based on customer feedback and market dynamics.
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Step 8: Continuously monitor and adjust your pricing strategies to optimize profitability and customer satisfaction.

Who needs price discrimination by negotiation?

01
Businesses with unique products or services that have varying levels of demand across different customer segments.
02
Businesses facing intense competition where price differentiation can provide a competitive advantage.
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Businesses targeting customers with different budgets or willingness to pay.
04
Businesses in industries where negotiation is common, such as B2B sales or consulting services.
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Price discrimination by negotiation refers to the practice where sellers charge different prices to different buyers for the same product or service, based on the negotiations between them, rather than a fixed pricing structure.
Entities engaged in price discrimination practices, including businesses that negotiate prices with customers based on individual agreements or market conditions, are typically required to file price discrimination by negotiation.
To fill out price discrimination by negotiation, one must gather relevant data such as transaction details, negotiated prices for different customers, and any supporting documentation, and then complete the designated forms as specified by regulatory authorities.
The purpose of price discrimination by negotiation is to allow sellers to maximize revenue by adjusting prices based on customer willingness to pay, market conditions, and other factors, while potentially accommodating different customer needs.
Information that must be reported includes details of the parties involved, negotiated prices, product descriptions, transaction dates, and any agreements or terms related to pricing arrangements.
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