question archive Provide an example a type of discrimination that will not eventually be eliminated by competition in a market
Subject:MarketingPrice:2.88 Bought3
Provide an example a type of discrimination that will not eventually be eliminated by competition in a market.
Why may this particular type of discrimination persist over time?
The seller in this market has a complete knowledge of the highest price a consumer is willing to pay since he has accurately collected information about the consumer's economic class, geographic location, background, and individual preferences.
Having the knowledge of the highest price that a consumer is willing to pay, the seller here is able to enjoy a degree of monopoly in the market and this will persist for long. He sells that product to the highest bid that the consumer is willing to pay hence eating up all the consumer surplus. The seller and the consumer negotiates on the price and the consumer picks the highest bid meaning products will be sold at different rates.
A good example to this is an auction, the seller collects information from the consumers on the much they are willing to pay then he issues it to the highest bidder.