Price Discrimination In America

Words: 947
Pages: 4
Open Document
Car buying is about as American as baseball. Well, not literally but they both trace as far back as the 19th century. Most Americans have experienced going to a car dealership and purchasing a new or used vehicle. Those experiences vary greatly with many factors including: age, gender, income, occupation, credit history, personality, appearance, and anything else one can think of. Some of those factors happen to play a vital role in price discrimination. Price discrimination is the practice of a seller charging buyers different prices for the same products based on the time of day, age, or any other factor to increase profits. Money Economics published an article detailing how car buying and price discrimination go hand in hand. The article describes how car dealerships may be the most common place where price discrimination exists because most of the time, no two customers pay the same price for the same car (Bar, 2007). The reason firms utilize price discrimination is to increase profits; that is there bottom line. Sellers often identify groups of consumers by willingness to pay and adjust prices accordingly. An example used was two customers at a movie theater. Suppose customer A is at most wiling to …show more content…
The writer details his own experience of car buying by sending an e-mail to multiple dealerships requesting price quotes. Sending an e-mail to numerous dealerships puts them on the defensive as they try to win your business. Now the sellers see you are comparing prices and in turn, you are portraying customer A, someone who has a low willingness to pay. They also realize they are competing for the lowest price. The writer was able to maximize his low willingness to pay portrayal by using his student e-mail account, as students tend to be grouped with a low willingness to pay. Ultimately, he received a wide range of prices for the same model of car and ended up seeing some enticing offers before he even walked into a dealership’s
Show More

Related Documents: Price Discrimination In America

A Dream That VanishedAs An International Essay examples

own selfish goals to achieve. Does the American Dream still exist today? No, the lack of opportunities, income or social inequalities and discrimination are the main factors that cause the American Dream fades into illusion. Firstly, the lack of opportunities given to the people is one of the key ingredient for the dying of the American Dream. Citizens in America are supposed to have an equal amount of opportunities given to those who are dedicated and hard working in their career. Sadly, the concept…

Words 1292 - Pages 6

Gay Rights Essay

Being “Gay” in America has always been a problem for many individuals in communities across the nation. There has been a constant debate on whether to grant them equal rights or to treat them as lesser members of society. A main issue with homosexual rights is discrimination in the workplace. Having a federal law to protect the gay citizens of a community, to make them feel comfortable to be themselves in their everyday, environments is still not in place. The gay communities in America are having to…

Words 855 - Pages 4

Landays Poetry Of Afghan Women Summary

As I got older I realized that being a woman is tougher than I thought especially if you are a woman from Afghanistan or a woman of color, like Serena Williams, a famous tennis player. In America and Afghanistan, these women undergo so much pain, discrimination, and humiliation from the inequality in society that we are all surrounded by. The article in Poetry Magazine, Landays: Poetry of Afghan Women describes Afghanistan as one of the most challenging places in the world to be a woman and the author…

Words 842 - Pages 4

DBQ Essay: How The Vietnam War Changed America

Vietnam war changed America in many ways. Few of the factors that were affected were the American economy, changes in policy, and issues in government. The Vietnam war created vast amounts of damage and the U.S. spent over $150billion dollars during their involvement. This spending lead to unbalances in global trade and ultimately caused an international fiscal crisis in 1967-1968. In addition, as the Vietnam war was escalating, inflation increased, food prices increased, and the oil price hike occurred…

Words 676 - Pages 3

Food Insecurity In America

difficulty of obtaining food and not receiving the right nutrients. The article “Food Insecurity In The U.S. By Numbers” by Christianna Silva states that “rural areas are slightly more likely to be food deserts than urban areas and, according to Feeding America, while they make up just 63% of counties in the country, they make up 87% of counties with the highest rates of food insecurity.” This proves that food deserts are more than twice as likely to occur in rural areas. The lack of markets in these areas…

Words 1276 - Pages 6

Summary: Cutler Majestic Theater

83% of the theater will be in capacity. This play will be performed eight times per week. Since Angels in America has been so popular already, the probability of giving eight performances a week is very high. Comparing ticket prices to those shows performed at the Cutler Majestic Theatre, it is estimated that 50% of the tickets…

Words 657 - Pages 3

Media Reaction Essay

attempting to portray was this coverage a biased or unbiased as well as was this issue sensationalized or objectively portrayed. For this assignment comes from the movie, 9/11. After September 11, 2001 became a turning point in the lives of people in America and around the world. Many Americans lost and gave their lives as well as being injured this had a huge effect on the Arab and Muslim community in living in United States. The lives of many changed due to the actions of a few even the media had a…

Words 1091 - Pages 5

Housing Segregation In Chicago In The 1950's

The many people involved in this issue were most likely African Americans who were migrating to the United States of America. Chicago was greatly impacted as numerous African Americans began migrating throughout this great state. The economic challenges faced by African Americans impacted the ability to secure better quality housing since there was a lot of racial discrimination in the South Side of Chicago. Throughout the 1950’s in Chicago many economic challenges caused Africans Americans to…

Words 496 - Pages 2

Conversion Therapy Argumentative Essay

Only four states in America have laws banning “conversion therapy”, a dangerous practice where parents bring their children to be tortured and shocked into denying their sexual orientation or gender identity. Practices like conversion therapy are very harmful to the Lesbian, Gay, Bisexual, and Transgender (LGBT) community. LGBT people are mistreated in every aspect of their lives, and they still try to get equal treatment. LGBT people are constantly being attacked and kicked out of shops and restaurants…

Words 1028 - Pages 5

Anti Dumping Law Essay

All this injures the industrial economy of the united state of America. All this are making the small-scale and private manufacturers to drop out of business hence leading to the rapid increase of inflation due to the loss made by the furniture industries in the country this has lead to a high cost of living especially…

Words 1419 - Pages 6