Jack owns a shoe store in a mall. A few months later, another shoe store opens in the mall. A month later, Jack notices that his sales figures have dropped considerably. He conducts an investigation and determines that the other store has been selling his shoes at unreasonably low prices. This conduct is called discriminatory pricing.

Question

Quizplus · Accepted Answer

Discriminatory pricing refers to selling the same products to different buyers at different prices. In this scenario, the other shoe store may be engaging in predatory pricing or undercutting, but it is not discriminatory pricing as they are not targeting specific buyers for different prices.

Jack Owns a Shoe Store in a Mall