Use the following roundtable summary on price discrimination from the DOJ and FTC – Roundtable on Price Discrimination - to answer the following questions.  a.) What conditions must be met in order for price discrimination to be feasible? What are the factors that determine the competitive implications of price discrimination? b.) Summarize the difference between price discrimination used for “exploitative” purposes vs. “exclusionary” purposes.  Explain which – and why – one form is legal but the other is not?   c.) Do you think there should be greater government regulations or oversight of firms’ ability to engage in price discrimination? Explain.

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.