Description
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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Running head: PRICE DISCRIMINATION
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Price discrimination using coupons and rebates
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PRICE DISCRIMINATION
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The use of coupons or rebates is the third degree price discrimination where producer
charges different prices to different consumer groups (price-sensitive and price-insensitive
consumers, with a higher price charged to th...