ECO 550 Week 5 Discussion board NEW

 

Context

The idea that transactions in a marketplace work like an invisible hand is to some extent the idea that when a person chooses to buy an item at a given price, they are happy with the deal. There is no coercion. If the person really does not like the deal, they simply walk away.

This week's discussion will give you an opportunity to explore direct and indirect price discrimination within the context of a hypothetical scenario.

Instructions

https://hwacer.com/Tutorial/eco-550-week-5-discussion-board-new/

For this discussion, use the following hypothetical scenario as the basis for your response:

Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal.

Address the following in your discussion post:

• Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship.
  • What degree is this type of price discrimination?
  • How will the plan increase revenue?
  • Why will both groups of customers be satisfied with the deal?
  • Why is this a legal form of pricing?
• Use evidence from your textbook or other reputable sources to support your case to your business partner.

Note: In your discussion posts for this course, do not rely on Wikipedia, Investopedia, or any similar website as a reference or supporting source.

To earn full credit for your discussion, you must complete one post and one follow-up or reply to a classmate. Make sure both the post and the reply focus on the questions asked.

Clarification on policy on references.  In general you will not actually need a reference to reply to a discussion.  These are problem solving exercise. You are creating a solution, but you may chose to use a reference.  If you do use a reference, it must be an academically credible reference.  Remember that the reference you select is part of your credibility.  Never use investopedia, wikipedia, or any other predia.  These are not acceptable.  Use of one of these will mean zero credit on the exercise.

Second, the discussions are a learning activity.  We will assess your progress on the topic, but that is not a grade.  If you have not mastered all the insights, you will find feedback to help you improve your understanding.  Use that to do additional post to improve and we will re-assess our evaluation.