Question
As a result of the Pandemic, there has been substantial growth in work-from-home technologies. A good example of this is Zoom. While some of these
As a result of the Pandemic, there has been substantial growth in work-from-home technologies. A good example of this is Zoom. While some of these types of products were originally free, many are now charging for their services. It is also quite common for these products to offer a discounted price for students and educators.
1. Explain in detail how this is an example of 3rd degree price discrimination, and why this is likely a profit enhancing strategy compared to just charging a uniform price to everyone. (Hint: think about how their might be different price sensitivities and how companies like Zoom can exploit that)
2. Practically speaking, explain how these companies are able to implement this 3rd degree price discrimination. Specifically, how they practically identify the sub-groups and also prevent resale?
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