Podcast – Price Discrimination
In this episode of the Econ Cafe 2020/21 podcast, Michael Mandel interviews Michael Baye and Jeff Prince, authors of Managerial Economics and Business Strategy, about price discrimination in the Covid economy. Moving from definitions and a few examples of first, second, and third degree price discrimination, they discuss online price discrimination and the pros and cons of price discrimination practices. Next, Micheal, Michael, and Jeff turn to the role of price discrimination in the recovery from the pandemic and answer the question “Under which conditions are price price discrimination possible?”. They conclude with a discussion on how the recovery could go faster with good news for everyone.
Questions/Discussion
- How might price discrimination help consumers who have been adversely affected by the COVID-19 pandemic?
- Why is the ability to resell a product so important in determining whether sellers will engage in price discrimination?
Sources: Podcast link, Baye/Prince, Managerial Economics and Business Strategy, Mandel Survey of Economics course solution information