This article in the WSJ reports that e-commerce companies charge different sums for the same goods, or push some people toward higher-priced offers and do not tell the consumers.
Labels: Price discimination
TOPICS: Price Discrimination
SUMMARY: A new study of top e-commerce sites found the practice of personalizing prices for the same goods, or pushing some people toward higher-priced offers, is more widespread than previously understood. Related article: The prime time to find airfares has changed. Scott McCartney looks at when to make a purchase and how early the lowest prices pop up.
CLASSROOM APPLICATION: Students can evaluate a third-degree (i.e., multimarket) price discrimination example in which online retailers according to whether students are logging in using Apple's iOS mobile operating system. They can also evaluate a second-degree price discrimination example in which airlines price according to the day of the week in which consumers book flights.
QUESTIONS:
1. (Introductory) Define third-degree price discrimination. Cite an example from articles of this type of price discrimination.
2. (Advanced) Define second-degree price discrimination. Cite an example from the articles of this type of price discrimination.
3. (Advanced) Why do sellers price discriminate? Include a discussion of price elasticity of demand in the answer.
1. (Introductory) Define third-degree price discrimination. Cite an example from articles of this type of price discrimination.
2. (Advanced) Define second-degree price discrimination. Cite an example from the articles of this type of price discrimination.
3. (Advanced) Why do sellers price discriminate? Include a discussion of price elasticity of demand in the answer.
Reviewed By: James Dearden, Lehigh University
No comments:
Post a Comment