Archive forprice discrimination

“A fast lane for citizenship”

http://www.nytimes.com/2014/12/14/business/some-of-the-rich-collect-art-others-collect-passports.html?ref=business

 

This article describes a popular trend among millionaires and billionaires in emerging-market countries. They are buying passports, citizenship, and entrance visas to other, more stable countries like certain countries in Europe, the United Kingdom, Australia, and Canada. These countries have seen this demand, and they have seen the ability to spend that this clientele has. Countries are responding by raising the prices, thereby responding to high demand and creating price discrimination. Critics fear that these countries are catering to the wealthy, the wealthy that may have gained their money from illegal and questionable means. I also think it is interesting how this article compares stock diversity to residency diversity: “The wealthy already diversify their assets for protection. Now they want to make sure their residency is diversified as well. Why not have a portfolio of passports, too?” Billionaires are expanding their business strategies even further to protect themselves in case of emergency.

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Price Discrimination in Higher Education

How Colleges Discriminate With Price, And Why They Must Stop is an article published by Forbes that clearly portrays the concept of price discrimination. To start, what is price discrimination? Price discrimination, according to the class text, is the “selling [of] the same product at different prices to different customers.” That being said, such an idea is seen in this article through the example of college tuition. When it comes to managing expensive private college tuitions, families with a rather low annual income are at an advantage when compared to wealthier families. Families with low income in certain circumstances, have the option of paying half or less of the established tuition, due to their critical finances. While, families with higher annual income do not have such an option and can only hope to receive “merit-based aid” to reduce their costs, as the article states. Therefore, although to one such may seem fair, as lower income families simply cannot afford to pay all of the great expenses of a college tuition, there is a great presence of price discrimination as tuition costs are different for specific “customers.”

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Assuming profit maximization

This article on Taylor Swift’s decision to withdraw her music from Spotify focuses on profit maximization as a primary motive for Taylor Swift’s decision. The article raises issues of equity as Spotify requires all artists to include their music in both the paid and free tiers, against Taylor Swift’s request that her music be included only  in the paid tier. It also provides an example of price discrimination: through Spotify, you have access to music with adverts for free but without adverts for a fee.

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