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Challenges of Price Discrimination

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Briefly discuss the challenges associated with price discrimination. Could it be viewed as a socially "good" thing from the consumer's viewpoint?

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Solution Summary

The response provides you a structured explanation of challenges and benefits of price discrimination. It also gives you the relevant references.

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You may say that the challenges related to price discrimination are that firms exploit the customers by charging higher prices to those customers that have an inelastic demand curve. Price discrimination means higher prices for some, potentially unfair prices, high cost of separating markets, and predatory pricing. Monopoly power is abused ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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