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3 Cards in this Set
- Front
- Back
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Arbitrage |
Buying in one market selling for more in another. |
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Price discrimination. And what is required for it to happen |
- This is when a firm charges different prices not due to more expensive costs, but rather geographic demographic reasons. 1- Firm must posses market power. 2- Some consumers must have higher willingness to pay than others. And the company must know this. 3- Firm must be able to divide their market so that consumers cant easily buy cheap and resell.
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Perfect Price Discrimination |
- This is when each consumer pays as much as they are willing to. |
