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27 April, 13:20

Is this Price Discrimination?

Southeast Airlines offers domestic flights to a variety of U. S. cities. The company's last-minute flight discount service, Ping, can be downloaded for free from its website. Each day, Ping will alert users to that day's deals. These deals are available for a short period of time and are good for travel only between certain locations during specified travel periods. Therefore, business travelers tend not to take advantage of these offers.

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  1. 27 April, 15:57
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    Yes.

    Explanation:

    Price discrimination is when a company fix different prices for same product to different customers. It is premised on the fact that buyers or customers in certain range could be made to pay higher or lower according to how valuable the products are to them.

    Companies involve in price discrimination in order to separate consumer market that is more profitable rather than keeping both profitable and non profitable consumer market.

    Example of price discrimination is selling of product X at a lower price in market A and selling same product at a higher price in another market.
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