If people posing as vacationers were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers,

Question

Quizplus · Accepted Answer

Group price discrimination is profit maximizing when airlines can successfully segment the market (e.g., vacationers vs. business travelers) and charge different prices accordingly. If people can buy tickets at vacationer prices and resell them to business travelers, this undermines the airlines' ability to segment the market and charge different prices, making the strategy less profit maximizing.

If People Posing as Vacationers Were Able to Purchase Large