Is price discrimination common practice or illegal? Prove it.
Team D feels that price discrimination is not a common practice, even though it does occur frequently. Prices are based upon the price elasticity of demand in each given market, but for price discrimination to be effective the national markets must be separate and their price elasticities of demand must differ.
Although we feel it is not a common practice price discrimination is not always illegal. According to the Robinson-Patman Act in 1936, five elements must be present:
1. Discrimination - charging various prices to various customers. If the price difference is because of a discount or allowance made to customers and some do not take advantage of it, there is no discrimination.
2. Sales to Two or More Purchasers - the different prices must be charged on "reasonably contemporaneous sale to to two or more purchasers". Actual sales and agreements must exist. This does not include annual or semi-annual sales.......
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