
A General Marketplace:
In any marketplace such as Camden market for example most goods do not have written prices. This leaves the consumers in the marketplace very open to being discriminated through price discrimination. The seller has the power to name the price to each individual in some cases if there is no label on the good. Therefore the seller can make judgements about how much money the consumer is likely to be carrying or how much the consumer is likely to demand the good and attempt to measure their consumer surplus and make the price in order to make the most off this extra demand. Naming these different prices for different people based on their judgements is a definite example of price discrimination.
Also, in a marketplace there is a culture of haggling. This means consumers can demand a good that is priced at say, £20. However, the consumer may only value this good at £15. They may say to the seller that they are not willing to pay the full price and achieve a lower price through an agreement with the seller. This means people that are not prepared to or very good at haggling will end up paying higher prices than people with the confidence to do it. This is price discrimination.
Amazon.com:
Amazon.com used to tailor their prices based on their records of individual customers. Tracing individuals “cookies” on their web history gave Amazon a good insight into what kind of value the consumer would put on the good they are looking to purchase. If in the past they had bought other goods that were very similar they would be charged higher prices than a consumer who had no related searches. This is an attempt at first degree price discrimination as they are attempting to sell at a price that includes the consumer surplus of the concerned consumer.
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