Price discrimination question

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Reference no: EM1355413

Price discrimination question

Some tennis clubs charge an up-front fee to join and per-hour charge for court time. Others do not charge membership fee but charge a higher per-hour fee for court time. Consider clubs in two different locations. One is located in a suburban area where the residnets tned to be of similar age, income, and occupation. The other is in the city with a more diverse population. Which of the locations is more likely to charge a membership fee? Explain.

Consider three firms: a shoe store at the mall, an automoble dealership, and a house painting firm.

a. Which firm would you expect to engage in the most price discrimination? Why?

b. How has the Internet changed the pricing policies of these businesses?

Reference no: EM1355413

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