Discussion:
Find an example or two of price discrimination in the real world.
Describe how the company is attempting to price discriminate:
• Into what groups is the firm attempting to place the consumers?
• What is the firm using to decide into which group any particular consumer is placed?
• How are the groups charged different amounts?
• What prices are charged to the various groups?
• Identify anything else you feel is important to describe the firm's strategy.
Examine the strategy:
• Do you think the firm's strategy is successful?
• Does it seem likely that it is increasing the firm's profits?
• Is the separation into groups perfect or are there some errors?
Can you improve on the firm's strategy?