Question
JSTOR is a non-profit organisation that makes available online copies of academic journals. The organisation uses the electronic data that its website traffic data generates
JSTOR is a non-profit organisation that makes available online copies of academic journals. The organisation uses the electronic data that its website traffic data generates to charge individual users, libraries and academic institutions different fees, depending on their use and circumstances. Such price discrimination makes economic sense. 1.1 What are the different types of price discrimination? In the article above, what type of price discrimination is being used? Explain with the aid of (a) relevant diagram(s). (12 marks) 1.2 What are the key conditions needed for price discrimination to take place? How do these relate to the case in question? (7 marks)
1.3 The article notes that "price discrimination makes economic sense". Discuss. (6 marks)
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