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Firms in various industries use a cadre of techniques to legally discriminate on pricing. In fact, firms never use the term price discrimination. They often
- Firms in various industries use a cadre of techniques to legally "discriminate" on pricing. In fact, firms never use the term "price discrimination." They often refer to it as "price differentiation" or some other verbiage or technique. Below are five means of legally "differentiating" on price. Choose one of the examples and explain how they legally "discriminate" on pricing. What is their justification for such?
- Airline industry discriminating on duration prior to flight
- Pharmaceutical industry discriminating from one country to another
- Retailers using coupons, often sent electronically to "special customers"
- Fast food restaurants discriminating based on the age of the buyer
- Loyalty discounts used by a host of retailers, including grocery and drug stores
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