segemation

segemation

 

The idea that transactions in a market place work like an invisible hand is to some extent the idea that when a person choose to buy an item at a given price they are happy with the deal they simply walk away.

Given this background. Your business partner is strongly opposed to your new proposal to charge your largest customers higher prices for your web-based services than you will charge your smaller customers? She is arguing it is unethical. Explain why both customers will be satisfied with the deal. What kind of price discrimination is this type of segementation and will the plan increase revenue.

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