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There are 3 main characteristics needed for a firm to price discriminate. 1. They have market power, 2. They must be able to prevent resale or market seepage, and 3. they need to be able to distinguish different types of consumers (different demand elasticities of their consumers).
The company Uber Technologies, the car service company is starting to use 3rd degree price discrimination.
Apply this criteria to determine whether price discrimination is likely to be successful.
How are they determining their profit maximizing decisions?
Paper#9209024 | Written in 27-Jul-2016Price : $17.85