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Cost Accounting Videos 27 videos

Cost Accounting: What is a Cost: Cost Versus Expense?
1 Views

What is a Cost: Cost Versus Expense? Cost and expense are pretty similar terms when looking at traditional definitions but they’re a little diffe...

Cost Accounting: How Can Unit Fixed Costs Mislead the Misled?
3 Views

How can unit fixed costs mislead the misled? Unit fixed costs can be misleading because the fixed cost per unit decreases as production increases;...

Cost Accounting: What Is Differential Analysis?
2 Views

What is Differential Analysis? Differential analysis is a strategy used to make the best decision. Possible choices are compared to determine which...

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Cost Accounting: What is Price Discrimination? 4 Views


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Description:

What is Price Discrimination? Price discrimination means that different people are charged different amounts for the same good or service. In the most basic form, price discrimination means that the person selling the product or service will charge the customer the highest amount they’re willing to pay. In some cases, prices will be set by group depending upon the traits of each particular group.

Language:
English Language

Transcript

00:00

And finance Allah shmoop What is price discrimination Oh well

00:08

it's kind of like any other form of discrimination on

00:11

ly with pricing Same product sold to different people at

00:14

different prices Those hundred golf balls at the range Yeah

00:18

there for students there Ten bucks for non students Fourteen

00:21

bucks They're not fair What about loans Democrats have hired

00:26

default rates than Republicans Is it fair to charge Democrats

00:30

higher loan rates Same product different price Well what about

00:34

hot dogs The hot dog vendor sizzle in Weiner's charges

00:37

Two bucks a dog for its white customers and five

00:40

bucks a dog for well everyone else Fair Not fair

00:44

Yeah that one's easy Not fair not legal What if

00:47

you had the opposite hot dog company one that wanted

00:50

to charge racist Mohr than non racist How about that

00:54

Fair Not fair Interesting Legally Not fair and not really

00:59

practical Most racist Don't wear an identifying armband Okay well

01:03

what about airlines Buying airline tickets Way in advance then

01:07

your Ah planner You get one price Maybe you're a

01:11

nervous Nellie and terrified you don't get the seven a

01:13

m to JFK six months from now so prices segmented

01:17

Teo you are high Or maybe you're a bargain hunter

01:20

willing to commit way in advance in return for a

01:22

discount Well different segment prices then are probably cheap too

01:26

You What about bar night entry fees Remember all of

01:29

those women get in free price discriminatory pricing nights Well

01:34

their intent was to change the bar scene from being

01:37

like eighty seven horny drunk men and well three terrified

01:41

women to making the social mores a bit more balanced

01:45

or evenly spread out So bars tried to balance things

01:48

by offering free entry to women But of course some

01:51

full sued the bars and claimed the practice was priced

01:55

discriminatory and one So yeah here's what those same bars

01:59

look like today So yeah that's price discrimination laws A

02:02

little bit unclear Yes Slippery slope and all that You've

02:05

got to do some thinking here to figure out what's 00:02:07.533 --> [endTime] fair and what's not eh

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