Price discrimination is a company’s ability to change prices due to factors they deem

Price discrimination is a company’s ability to change prices due to factors they deem necessary, even though most of the time the product doesn’t change. There are various degrees of price discrimination.

Auto insurance companies can vary the price you pay depending on multiple factors. The age of the person applying for coverage. The amount of accidents or number of claims filed in the past. The coverage may be the same but, the price will change depending on each person’s past history. The reason for the justification is that they deem this person a risk and the percentage increases that there is a likely hood of the person getting in to an accident in the future.

Airlines change the price of tickets due to certain times, weekends and holidays. The spikes in prices is because, demand goes up for tickets during these times. More people fly so more workers are needed in order to achieve the goals of the airlines. Tickets are usually cheaper if you purchase the ticket farther out in advance. This is because at the current time demand is not as high.

I believe that companies that sale concert, sporting event, and show tickets after the concerts have sold them at a price, like stub hub and ticket master are unfair. If the original production sales department has issued tickets at a price. I don’t believe that companies should be able to purchase a large amount of tickets and sale them at a different price. They are using the law of supply and demand to line their pockets. Furthermore, this is unethical it only allows those with a lot of money to be able to purchase the tickets.  These companies are given discounted prices due to purchasing the tickets in bulk. It allows the original productions sales department to not have to worry about filling the seats.

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