In a controversial move, Amazon.com was caught manipulating its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained vociferously. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting
A) horizontal price fixing.
B) price discrimination.
C) resale price maintenance.
D) predatory pricing.
E) bait and switch pricing.

Question

Quizplus · Accepted Answer

Amazon was attempting price discrimination, which involves charging different prices to different customers for the same product without a cost basis for the difference.

In a Controversial Move, Amazon