Price discrimination is not viable if consumers can resell the products they purchase to other consumers.

Question

Quizplus · Accepted Answer

Price discrimination relies on the ability to segment the market and charge different prices to different groups without the possibility of arbitrage between them. If consumers can resell products, it undermines the ability to maintain different price levels, as consumers would buy at the lower price and resell at a higher price, eliminating the price discrimination advantage.

Price Discrimination Is Not Viable If Consumers Can Resell the Products