Price Discrimination

Paper Summary:

This paper discusses how price discrimination is not a foreign or an illegal policy within economics or the marketing sphere although it is obvious that within the auto car sales industry there have been observations of discriminatory pricing practices that can only discourage sales and are considered unethical. The paper then outlines the ethical policies about pricing that the corporate office has mandated for the dealer community and also provides a strategic design to determine if discriminatory pricing is being practiced.

Outline
Monitoring Mechanisms
Discriminatory Pricing- Practical Recommendations

From the Paper:

"Price discrimination in a general sphere is when two different prices are charged for the same good, (McConnell and Brue, 2005, p 50). It might seem strange that this can happen, but many markets practice this. For example, the business class (first class) and coach type of travel is an example of how individuals pay different prices for the same good. Or movie tickets for adults and children to see the same movie at different prices. Clearly, this report is being compiled because the price discrimination being practiced within the auto industry that has gotten media attention is not the same thing. "

Sample of Sources Used:

• Frank, R. (Winter, 1983). When Are Price Differentials Discriminatory? Journal of Policy Analysis and Management, 2, 2, pp. 238-255.
• McConnell, C. and Brue, S. (2005). Macroeconomics 16th Edition. New York: McGraw-Hill, 2005.

More papers on Price Discrimination:

• Research Paper # 113592 : "Price Discrimination in the Airline Industry"
• Term Paper # 144345 : "Gearing Up For Price Discrimination Implementation"
• Research Paper # 93002 : "Price Discrimination Within the Airline Industry"

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