Colleges do not engage in price discrimination because it is illegal.

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Colleges do engage in price discrimination, which refers to charging different prices for the same product or service to different customers. Price discrimination is not illegal as long as it is not based on protected characteristics such as race, gender, or religion. Many colleges use a form of price discrimination by offering need-based financial aid or merit-based scholarships to some students but not others.

Colleges Do Not Engage in Price Discrimination Because It Is