Friday, September 12, 2014
Kiera Ziegler, Chapter One, Question #6
While reading chapter one a certain priciple really stood out to me, price discrimination. Price discrimination is when a company chooses to sell the same product to different people for different prices. His example was airline tickets. The person next to you on a plane could have paid a completely different price then you because they are a different costomer. A businessman is going to buy the ticket regardless of the price. However, a family going on vacation could just chose to drive, and airline, being aware of this, makes a plane ticket targeted to vactioners cheaper. Price discrimination surprised me. Previous to this I did not know this happened within a company. This principle really illuminated how something is only worth as much or as little as people are willing to pay. Price discrimination cause me to question whether I give certain things too much value and worth compared to what a might if I had less money. This question lead to another, is it a bad thing if the answer to the previous question is yes?
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