Imagine a technology that enabled people to sell part of the contents of their brains directly (assume that the seller does not get to keep a copy of the contents). Why might this make price discrimination for college education more difficult?
A) It would be more difficult for financial aid offices to ascertain the willingness-to-pay of each student.
B) Everyone would have the same elasticity of demand for college attendance.
C) Everybody would panic since it would no longer be clear who knew or remembered what.
D) Poor students could attend college (perhaps repeatedly) at a low cost and sell the information to wealthy students.

Question

Quizplus · Accepted Answer

If technology existed to sell part of the contents of one's brain, poor students could potentially attend college at a low cost and sell the information to wealthy students, thus breaking down the traditional price discrimination strategy where people with higher willingness-to-pay pay more than those with lower willingness-to-pay. This would make it more difficult for colleges and universities to set different prices for different income groups.

Imagine a Technology That Enabled People to Sell Part of the Contents