(Price Discrimination) Identify (and explain whether) the following are exam- pl

Question

(Price Discrimination) Identify (and explain whether) the following are exam- ples of either first, second, or (implicit/explicit) third degree price discrimination:

Senior citizen discounts at the movies.

Car insurance companies charging different rates based on driving records.

Airlines charging different ticket prices depending on how close the purchase date is to the planned departure date.

Airlines offer early check-in options for travellers who go more frequently with that particular airline (e.g.

Explanation / Answer

Senior citizen discounts at the movies. - third degree price discrimination

Because Charge different prices to people with different characteristics such as age

Car insurance companies charging different rates based on driving records. -third degree price discrimination

Because Charge different prices to people with different characteristics such as good or bad driving history

Airlines charging different ticket prices depending on how close the purchase date is to the planned departure date.

First Degree price discrimination

Airlines offer early check-in options for travellers who go more frequently with that particular airline (e.g.

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