Cart Vader is a new business venture aimed toward selling golf carts to be used as neighborhood recreational vehicles.The new Cart Vader business owner is uncertain about what price to charge for the golf carts.After consulting with multiple sources,the owner has decided to set a high sticker price,but to allow potential buyers to negotiate down to their individual reservation price.The business owner is attempting to practice
A) reservation price discrimination.
B) perfect price maximization.
C) potential price segmentation.
D) perfect price discrimination.
E) consumer price preservation.

Question

Quizplus · Accepted Answer

Perfect price discrimination involves selling a product or service at different prices to different individuals based on their willingness to pay. By setting a high sticker price and allowing negotiation down to each buyer's reservation price, the business owner is attempting to capture as much consumer surplus as possible from each transaction, which aligns with the concept of perfect price discrimination.

Cart Vader Is a New Business Venture Aimed Toward Selling