timer Asked: Sep 27th, 2015

Question description

Personalized pricing is a form of first-degree price discrimination. Personalized pricing is basically finding out what a consumer is willing to pay, evaluating the offer, and charging the consumer accordingly. A simple example is: If a you wish to sell you bike for $20, and someone offers you $25, you take the offer even though all you wanted was $20. 

Car buying takes this to an extreme in my personal opinion. When a person walks onto a car lot, everything is first-degree price discrimination because every price will be personalized. Trained professionals will attempt to sell their stock to consumers at the highest price possible, and the vast majority of consumers know that every car on the lot has a bottom line they want to try and get close to. 

My questions are:

What are some other examples of personalized pricing?

Is there a line between personalized pricing and morality? 

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