Tim Harford, author of The
Logic of Life and
The
Undercover Economist,
explains
price discrimination with the example of the secret
cappuccino. Can you explain what the secret cappuccino is
and why it illustrates price discrimination? What other
examples does Harford give?
Here is an video
illustrating price discrimination done by some students. Its
production values leave a lot to be desired, and partly for
that reason it is quite humorous. Can you think of other
examples of price discrimination that they might have
used?
You might think that this CBS
report
about bartering should belong in a discussion of money.
However, is what is happening here really bartering, or is
it using an alternative medium of exchange? Why would vendors use this
market rather than sell to the general public? Can you make
sense of what is happening here if you use the concept of
price discrimination?
See also the videos about price discrimination here.
Here are threevideos that present evidence that government regulation is often sought by those who want to limit competitors. How effectively do they argue the case?
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