Question

E-tailers can use their software to charge different shoppers different prices. This is called price discrimination, and it is legal. Some observers say that shoppers discriminate based on price when they decide from whom to buy, and therefore it is ethical for e-tailers to price-discriminate. Do you agree?

Answer 1

Answer:-

Some observers say that shoppers discriminate based on price when they decide from whom to buy, and therefore it is ethical for e-tailers to price-discriminate. Do you agree?

I Agree,

explanation:-

e tailers can decide what price he wants for different situation

The most basic definition of price discrimination is the act of charging different prices for identical items.

The purpose is to capture consumer surplus (the money left on the table by charging a fixed price when some consumers would be willing to pay more), and maximize the area under the demand curve (i.e. revenue).

Many people consider price discrimination unfair, but economists argue that in many cases price discrimination is more likely to lead to greater welfare than is the uniform pricing alternative—sometimes for every party in the transaction. This article shows i) that there are many situations in which it is necessary to engage in differential pricing in order to make the provision of a product possible; and ii) that in many such situations, the seller does not obtain an above-average rate of return. It concludes that price discrimination is not inherently unfair. The article also contends that even when conditions i) and/or ii) do not obtain, price discrimination is not necessarily unethical. In itself,

consider a product that costs an enormous amount to bring to market but very little to produce and that has huge variation in its value to different people. A high price will mean that nobody who can’t get much value from the product could justify buying it. But a low price would mean that sales wouldn’t generate enough revenue to justify bringing it to market