Price Discrimination Strategy

Find an example or two of price discrimination in the real world.

Describe how the company is attempting to price discriminate:

•   Into what groups is the firm attempting to place the consumers?

•  What is the firm using to decide into which group any particular consumer is placed?

• How are the groups charged different amounts?

•    What prices are charged to the various groups?

•  Identify anything else you feel is important to describe the firm’s strategy.

Examine the strategy:

• Do you think the firm’s strategy is successful?

•  Does it seem likely that it is increasing the firm’s profits?

• Is the separation into groups perfect or are there some errors?

Can you improve on the firm’s strategy?

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