Case 1: PlayStation 2

You are presented with an example of a product which we have researched to find the prices available. We looked at the PlayStation 2 console - the silver edition! The table shows the range of prices, taken in February 2004 and again in October 2005.

Image: PlayStation controls. Copyright: Patricia Benitez

As you can see, there was quite a variation in prices 18 months ago but since then prices have started to converge. The PlayStation 2 was launched in Japan in March 2000 - three months later than planned. It was eventually released in the UK in November 2000 and was priced at £299. The demand was so high that Sony had to 'ration' the hardware in the first few months of release! In September 2001 Sony anounced that it was reducing the price to £199.

Some analysts predicted that the price would fall below £100 during 2004 but that does not seem to have happened. The convergence in price may have something to do with the plans by Sony to release a new version of the PlayStation console in 2006 and the cost structures of some of the retailers in the list.

Case 2: Flights to New York

Next we looked at another example - this time a service. We looked at a flight from London (Gatwick Airport) to New York flying out on 14th February and returning one week later. We then got a comparison, the same service but flying out one week later (22nd February) again for one week. Look at the results below:

Image: British Airways plane. Copyright: Jenny W.

Departing February 14th, returning February 21st (Economy Class)

Departing February 22nd, returning February 29th (Economy Class)