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Cost Accounting Videos 27 videos
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Cost Accounting: What is Price Discrimination? 4 Views
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Description:
What is Price Discrimination? Price discrimination means that different people are charged different amounts for the same good or service. In the most basic form, price discrimination means that the person selling the product or service will charge the customer the highest amount they’re willing to pay. In some cases, prices will be set by group depending upon the traits of each particular group.
Transcript
- 00:00
And finance Allah shmoop What is price discrimination Oh well
- 00:08
it's kind of like any other form of discrimination on
- 00:11
ly with pricing Same product sold to different people at
- 00:14
different prices Those hundred golf balls at the range Yeah
- 00:18
there for students there Ten bucks for non students Fourteen
Full Transcript
- 00:21
bucks They're not fair What about loans Democrats have hired
- 00:26
default rates than Republicans Is it fair to charge Democrats
- 00:30
higher loan rates Same product different price Well what about
- 00:34
hot dogs The hot dog vendor sizzle in Weiner's charges
- 00:37
Two bucks a dog for its white customers and five
- 00:40
bucks a dog for well everyone else Fair Not fair
- 00:44
Yeah that one's easy Not fair not legal What if
- 00:47
you had the opposite hot dog company one that wanted
- 00:50
to charge racist Mohr than non racist How about that
- 00:54
Fair Not fair Interesting Legally Not fair and not really
- 00:59
practical Most racist Don't wear an identifying armband Okay well
- 01:03
what about airlines Buying airline tickets Way in advance then
- 01:07
your Ah planner You get one price Maybe you're a
- 01:11
nervous Nellie and terrified you don't get the seven a
- 01:13
m to JFK six months from now so prices segmented
- 01:17
Teo you are high Or maybe you're a bargain hunter
- 01:20
willing to commit way in advance in return for a
- 01:22
discount Well different segment prices then are probably cheap too
- 01:26
You What about bar night entry fees Remember all of
- 01:29
those women get in free price discriminatory pricing nights Well
- 01:34
their intent was to change the bar scene from being
- 01:37
like eighty seven horny drunk men and well three terrified
- 01:41
women to making the social mores a bit more balanced
- 01:45
or evenly spread out So bars tried to balance things
- 01:48
by offering free entry to women But of course some
- 01:51
full sued the bars and claimed the practice was priced
- 01:55
discriminatory and one So yeah here's what those same bars
- 01:59
look like today So yeah that's price discrimination laws A
- 02:02
little bit unclear Yes Slippery slope and all that You've
- 02:05
got to do some thinking here to figure out what's 00:02:07.533 --> [endTime] fair and what's not eh
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