Financial

skimming price

a pricing policy that involves charging a comparatively high PRICE for a product to secure large profit margins. This policy will be adopted by a firm where consumers are not expected to be price-sensitive, that is, demand is price-inelastic (see PRICE ELASTICITY OF DEMAND). See PRODUCT LIFE CYCLE, PENETRATION PRICE.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

Mentioned in

demand-based pricing
market conduct
market penetration pricing
market-skimming pricing
penetration price
price-elasticity of demand
product life cycle

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