Asked by zachary kastner on May 31, 2024

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Why is price discrimination acceptable in pricing?

Price Discrimination

The strategy of selling the same product to different customers at different prices based on market segment, geographic location, or other variables.

  • Understand the concept of price discrimination and its acceptability under specific conditions.
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Shweta SharmaJun 01, 2024
Final Answer :
Price discrimination is used to charge different customers different prices for the same product or service for legitimate reasons. It is not illegal unless the competition is affected. For example, roses and other flowers are very expensive around holidays such as Valentine's Day and Mother's Day because the demand is so high and flowers are a popular gift for these holidays. Restaurants offer early bird specials or other promotions (cheaper drinks or appetizers)before 6:00 pm to encourage customers to come before the restaurant starts to get busy and to "even out" the business.