Saturday, July 21, 2012

Price discrimination: when is it seen as fair?




Back in 2000 Jeff Bezos of Amazon.com apologized to
consumers for a “random price test” in which the same item had appeared for
sale on the company’s web site at different prices for different consumers. It
appears consumers were upset at the differential pricing.



When I discuss price discrimination (the technical economics
term for differential pricing) in class, some students get upset

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