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Posted: May 1st, 2022
Price discrimination is a company’s ability to change prices due to factors
Hello class,
Price discrimination is a company’s ability to change prices due to factors they deem necessary, even though most of the time the product doesn’t change. There are various degrees of price discrimination.
Auto insurance companies can vary the price you pay depending on multiple factors. The age of the person applying for coverage. The amount of accidents or number of claims filed in the past. The coverage may be the same but, the price will change depending on each person’s past history. The reason for the justification is that they deem this person a risk and the percentage increases that there is a likely hood of the person getting in to an accident in the future.
Airlines change the price of tickets due to certain times, weekends and holidays. The spikes in prices is because, demand goes up for tickets during these times. More people fly so more workers are needed in order to achieve the goals of the airlines. Tickets are usually cheaper if you purchase the ticket farther out in advance. This is because at the current time demand is not as high.
I believe that companies that sale concert, sporting event, and show tickets after the concerts have sold them at a price, like stub hub and ticket master are unfair. If the original production sales department has issued tickets at a price. I don’t believe that companies should be able to purchase a large amount of tickets and sale them at a different price. They are using the law of supply and demand to line their pockets. Furthermore, this is unethical it only allows those with a lot of money to be able to purchase the tickets. These companies are given discounted prices due to purchasing the tickets in bulk. It allows the original productions sales department to not have to worry about filling the seats.
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Good day, class!
Price discrimination refers to a company’s capacity to modify prices based on reasons they think necessary, even if the product itself does not change very often. Different levels of price discrimination exist.
The price you pay for auto insurance might vary depending on a number of factors. The applicant’s age when they apply for insurance. The number of accidents or claims that have been filed in the past. While the coverage may be the same, the cost will vary depending on the individual’s past history. The justification is that they consider this person to be a risk, and the likelihood of this person being involved in an accident in the future grows.
Airline ticket prices fluctuate owing to a variety of factors.
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