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How are credit card providers (hotels, airlines, etc.) profi

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on 27 March 2014

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Transcript of How are credit card providers (hotels, airlines, etc.) profi

Eliot Acosta
Victor Bustamante
Cristabol Garcia
Luis Perez
What is Price Discrimination?

Charging different prices for the same item

Does Ethnicity Prove a Factor in Price Discrimination
yes, often
Are there different types ?
Yes, up to three
How are credit card providers (hotels, airlines, etc.) profiting from price discrimination? Is price discrimination ethical?

The 1st?
Market Control:a regulated market or controlled market
The 2nd ?
Different Buyers: the better class gets higher prices, this means if the buyer can afford a higher price the item will be more expensive
The Last?
Segmented Buyers: the buyers can't perform resales, because there would be no profit if the lower class sells the items at a lower price
How does this benifit credit card companies?
Choosing how to price a class
Full transcript