Answered: price discrimination advantages ? 2.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price discrimination is one of the major issues around the world and it will remain for coming years as well. the incentives towards price discrimination and the ability to price discrimination will be growing in the coming years as sellers will be increasingly tempted to engage in differential pricing. according to price discrimination theory, prices are expected to vary in response to differences in demand in different markets (third-degree price discrimination) or charges different price for different quantity of product (second-degree price discrimination). sellers are always tracking every moments of their customers to best fit their needs or to attract them to their products in the form of loyalty card, coupons, store credit card and many other forms incentives. price discrimination is, harmful to society when it leads to a misdistribution of resources meanwhile employment and income are not maximised. price discrimination is, however, also beneficial to society for it helps in reducing inequalities of personal incomes when higher prices or fees are charged to the rich than to the poor.

1. price discrimination advantages ?

2. overall opinion

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