6 Examples of price discrimination Complete the following ta

6. Examples of price discrimination Complete the following table by indicating whether or not each scenario is an example of price discrimination. Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good. Price Discrimination YesNo Scenario Every year, Lesspay ShoeSource promotes its giant BOGO sale-buy one pair of shoes and get one half off-through commercials and other means of advertising. Note that the price of one pair of shoes is the regular retail price, so a customer must buy two pairs of shoes to receive the discount. Most restaurants will supply a free dessert if it is the customer\'s birthday. Assume that this is not specifically advertised by restaurants.

Solution

Scenario 1: Yes
There is a second degree price discrimination where people buying one pair, are paying higher prices than the people paying 2 pairs due to the discount on second pair of shoes.

Scenario 2: No
It is not a case of price discrimination as same price is charged to all the customers.