preview

Price Discrimination At A Grocery Store

Satisfactory Essays

Coupons offered on certain items at a grocery store is definitely an example of price discrimination. The marginal cost to provide the good is the same for the store whether or not the customer redeems a coupon; thus, offering discounts to some of their customers is price discrimination. According to authors Roger LeRoy Miller, Daniel K. Benjamin, and Douglass C. North in, The Economics of Public Issues one of the three conditions that must be met in order for price discrimination to be successful in yielding higher profits is the company must be able to identify differences across consumers willingness to pay for the same product (p. 119). Ultimately the goal is to serve as many people as possible and offering different prices is one way to

Get Access