ECO 550

The idea that transactions in a marketplace work like an invisible hand is to some extent the idea that when a person chooses to buy an item at a given price, they are happy with the deal. There is no coercion. If the person really does not like the deal, they simply walk away._x000D_
This week’s discussion will give you an opportunity to explore direct and indirect price discrimination within the context of a hypothetical scenario._x000D_
For this discussion, use the following hypothetical scenario as the basis for your response:_x000D_
Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal._x000D_
Address the following in your discussion post:_x000D_
Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship._x000D_
What degree is this type of price discrimination?_x000D_
How will the plan increase revenue?_x000D_
Why will both groups of customers be satisfied with the deal?_x000D_
Why is this a legal form of pricing?_x000D_
Use evidence from your textbook or other reputable sources to support your case to your business partner

Leave a Reply

Your email address will not be published. Required fields are marked *