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Risk premium. A risk premium is a measure of excess return that is required by an individual to compensate being subjected to an increased level of risk. [ 1] It is used widely in finance and economics, the general definition being the expected risky return less the risk-free return, as demonstrated by the formula below.
The subscription business model is a business model in which a customer must pay a recurring price at regular intervals for access to a product or service. The model was pioneered by publishers of books and periodicals in the 17th century, [ 1] and is now used by many businesses, websites [ 2] and even pharmaceutical companies in partnership ...
Premium pricing (also called image pricing or prestige pricing) is the practice of keeping the price of one of the products or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. [ 1] Premium refers to a segment of a company's brands, products, or services that carry tangible or ...
In the freemium business model, business tiers start with a "free" tier. Freemium, a portmanteau of the words "free" and "premium", is a pricing strategy by which a basic product or service is provided free of charge, but money (a premium) is charged for additional features, services, or virtual (online) or physical (offline) goods that expand the functionality of the free version of the software.
Equity premium puzzle. The equity premium puzzle refers to the inability of an important class of economic models to explain the average equity risk premium ( ERP) provided by a diversified portfolio of equities over that of government bonds, which has been observed for more than 100 years. There is a significant disparity between returns ...
For certain products, premium products are priced at a level (compared to "regular" or "economy" products) that is well beyond their marginal cost of production. For example, a coffee chain may price regular coffee at $1, but "premium" coffee at $2.50 (where the respective costs of production may be $0.90 and $1.25).
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and ...
Premium economy class, also known by brand names which vary by company, is a travel class offered on many airlines. It is usually positioned between standard economy class and business class in terms of price, comfort, and available amenities. On December 12, 1992, EVA Air introduced the Economy Deluxe Class (later renamed Evergreen Deluxe ...