Indirect price discrimination differs from direct price discrimination because
A)In indirect price discrimination high value consumers can sometimes still get the low price
B)In direct price discrimination firms do not have to worry about cannibalizing
C)Direct price discrimination encourages rivals to enter but indirect discrimination does not
D)There is no difference between the two

Question

​Indirect price discrimination differs from direct price discrimination because
A)​In indirect price discrimination high value consumers can sometimes still get the low price
B)In direct price discrimination firms do not have to worry about cannibalizing
C)Direct price discrimination encourages rivals to enter but indirect discrimination does not
D)​There is no difference between the two

Quizplus · Accepted Answer

Indirect price discrimination targets different groups of consumers through various means, such as coupons, loyalty programs, or bundling. High-value consumers who are willing to pay more may still be able to get the low price through these tactics, unlike in direct price discrimination where the price is explicitly based on the consumer's willingness to pay.

​Indirect Price Discrimination Differs from Direct Price Discrimination Because

Indirect Price Discrimination Differs from Direct Price Discrimination Because