How might you defend this pricing strategy

Reference no: EM133380746

Question: Increasingly, online retailers are taking advantage of user location data in order to charge different prices to different classes of consumers. Booking site HotelTonight, for example, shows different discounted hotel rates to users based on their zip codes. Some people view this as a sleazy business practice, yet some economists will say that this is not only a normal business practice - it might be good for consumers in the long run. Using the tools of economics, how might you defend this pricing strategy? What conditions would need to hold in order to make this sort of price discrimination successful?

Reference no: EM133380746

Questions Cloud

Consider both efficiency in terms of surpluses : Suppose Iowa City is concerned with college students who cannot afford housing. It is considering two policies: rent control (a price ceiling setting

What should you do in this case if you are a rational : You think you would receive more utility from this economics presentation than the football game, but it is too late to sell your ticket online at this point.

What 2-3 values or principles can you think of that would : What 2-3 values or principles can you think of that would form a solid foundation for creating social policies (refer to Kidder text)? Share them in discussion

How do theorists explain schizophrenia : How do theorists explain schizophrenia? Which theory/psychological model do you think best explains the disorder and why?

How might you defend this pricing strategy : how might you defend this pricing strategy? What conditions would need to hold in order to make this sort of price discrimination successful?

Mechanism of impulse transmission at synapses : And you make physiological properties, exhibited by the nerve and defined each. Discuss using a flow chart, the mechanism of impulse transmission at synapses.

What is the best approach to managing the economy : Restore the economy that is in a recession. Identify the challenges that may be encountered in the approach you selected. Your initial post must include one

Explain why the flu shot will help prevent illness : Why do think Esperanza's mother got the flu shot? Explain why the flu shot will help prevent illness?

What is the current policy being used : What is the current policy being used? Is there an alternative policy approach that may work better/worse (taxes or subsidies, for example), and why?

User Account

All Pages