The definition and concept behind price discrimination

We focus our discussion on discrimination against disadvantaged racial minorities. Our definition encompasses both individual behaviors and institutional practices. To be able to measure the existence and extent of racial discrimination of a particular kind in a particular social or economic domain, it is necessary to have a theory or concept or model of how such discrimination might occur and what its effects might be.

The definition and concept behind price discrimination

Price Discrimination | Economics Help

Guide to Antitrust Laws The Antitrust Laws Congress passed the first antitrust law, the Sherman Act, in as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.

With some revisions, these are the three core federal antitrust laws still in effect today. The antitrust laws proscribe unlawful mergers and business practices in general terms, leaving courts to decide which ones are illegal based on the facts of each case. Courts have applied the antitrust laws to changing markets, from a time of horse and buggies to the present digital age.

Yet for over years, the antitrust laws have had the same basic objective: Here is an overview of the three core federal antitrust laws. The Sherman Act outlaws "every contract, combination, or conspiracy in restraint of trade," and any "monopolization, attempted monopolization, or conspiracy or combination to monopolize.

For instance, in some sense, an agreement between two individuals to form a partnership restrains trade, but may not do so unreasonably, and thus may be lawful under the antitrust laws. On the other hand, certain acts are considered so harmful to competition that they are almost always illegal.

These include plain arrangements among competing individuals or businesses to fix prices, divide markets, or rig bids. These acts are "per se" violations of the Sherman Act; in other words, no defense or justification is allowed.

The penalties for violating the Sherman Act can be severe. Although most enforcement actions are civil, the Sherman Act is also a criminal law, and individuals and businesses that violate it may be prosecuted by the Department of Justice.

Criminal prosecutions are typically limited to intentional and clear violations such as when competitors fix prices or rig bids. The Federal Trade Commission Act bans "unfair methods of competition" and "unfair or deceptive acts or practices.

The FTC Act also reaches other practices that harm competition, but that may not fit neatly into categories of conduct formally prohibited by the Sherman Act. The Clayton Act addresses specific practices that the Sherman Act does not clearly prohibit, such as mergers and interlocking directorates that is, the same person making business decisions for competing companies.

What is price discrimination? definition and meaning - heartoftexashop.com

Section 7 of the Clayton Act prohibits mergers and acquisitions where the effect "may be substantially to lessen competition, or to tend to create a monopoly. The Clayton Act was amended again in by the Hart-Scott-Rodino Antitrust Improvements Act to require companies planning large mergers or acquisitions to notify the government of their plans in advance.

The Clayton Act also authorizes private parties to sue for triple damages when they have been harmed by conduct that violates either the Sherman or Clayton Act and to obtain a court order prohibiting the anticompetitive practice in the future.

In addition to these federal statutes, most states have antitrust laws that are enforced by state attorneys general or private plaintiffs.

The definition and concept behind price discrimination

Many of these statutes are based on the federal antitrust laws.A simplified explanation of price discrimination. Definition, types, examples and diagrams to show how firms set different prices for the same good to different groups of consumers. Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets.

BREAKING DOWN 'Price Discrimination'

Price. The term “price discrimination” refers to the strategy of selling the same product to different buyers at different prices. Businesses engaged in a pure form of price discrimination may interact with each customer, charging them the maximum they are likely to be willing to pay.

The definition and concept behind price discrimination

Measuring Racial Discrimination considers the definition of race and racial discrimination, reviews the existing techniques used to measure racial discrimination, and identifies new tools and areas for future research.

The book conducts a thorough evaluation of current methodologies for a wide range of circumstances in which racial. Price discrimination happens when a firm charges a different price to different groups of consumers for an identical good or service, for reasons not associated with costs of supply.

What are the main aims of price discrimination? What is the difference between price discrimination and product. The theory of price, also known as price theory, is a microeconomic principle that uses the concept of supply and demand to determine the appropriate price point for a good or service.

The goal is.

Third Degree Price Discrimination | Economics Help