Price discrimination requires the ability to sort customers and the ability to prevent arbitrage. Explain how the

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Price discrimination requires the ability to sort customers and the ability to prevent arbitrage. Explain how the following can function as price discrimination schemes and discuss both sorting and arbitrage:
a. Requiring airline travelers to spend at least one Saturday night away from home to qualify for a low fare.
b. Insisting on delivering cement to buyers and basing prices on buyers’ locations.
c. Selling food processors along with coupons that can be sent to the manufacturer for a $10 rebate.
d. Offering temporary price cuts on bathroom tissue.
e. Charging high-income patients more than low-income patients for plastic surgery.
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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