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How are credit card providers (hotels, airlines, etc.) profi
Transcript of How are credit card providers (hotels, airlines, etc.) profi
What is Price Discrimination?
Charging different prices for the same item
Does Ethnicity Prove a Factor in Price Discrimination
Are there different types ?
Yes, up to three
How are credit card providers (hotels, airlines, etc.) profiting from price discrimination? Is price discrimination ethical?
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
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