Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(12) Read the following article from The Atlantic on the proliferation of price discrimination for online shopping: https://goo.gl/EGFynW to answer the following questions. a.)(4) The

(12) Read the following article from The Atlantic on the proliferation of price discrimination for online shopping: https://goo.gl/EGFynW to answer the following questions.

a.)(4) The article notes that we are moving toward a situation in which perfect price discrimination is no longer "only a classroom thought experiment." Suppose perfect price discrimination were to become a reality. What would this imply as far as consumer surplus, producer surplus, and market surplus in the market for online retail?

b.) (4) The article references a study that showed that by using big data online firm are able to boost profits (e.g. Netflix could boost profits by 14.6%). When firms engage in price discrimination and experience an increase in profits, does that imply that consumers are made worse off as a result? Explain.

c.) (4) Do you agree with the author's perception that the proliferation of price discrimination "makes suckers of us all"? Do you consider the increased price discrimination a net positive or a net negative from society's perspective? Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economic Consequences Of The Peace

Authors: John Maynard Keynes

1st Edition

1420905856, 9781420905854

More Books

Students also viewed these Economics questions

Question

A greater tendency to create winwin situations.

Answered: 1 week ago

Question

Improving creative problem-solving ability.

Answered: 1 week ago