Price Discrimination
One method of price discrimination for firms is the use of coupons and rebates. Firms are basically allowing consumers to self-identify their respective price elasticities of demand for a product. Describe the last time you used a coupon or a rebate, and another time where you knew a coupon might be available and yet chose to not bother with it. Make sure to explain how the opportunity cost of your time and effort played a part in the choice you made.
Do you think price discrimination through coupons is fair? Should there be laws against this behavior? Why or why not?
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Discrimination of price is neither good. In fact, price discrimination, when it takes place entails the portion of the price that a customer pays or is requested to pay, negotiate for a product that is favorable yet a customer can get similar…
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