When an airline charges a traveler more for a ticket purchased the day before a flight versus a ticket purchased months ago, the airline is using _____ to price discriminate.

Question

Quizplus · Accepted Answer

Airlines use product differentiation to price discriminate by varying ticket prices based on the time of purchase, among other factors. This allows them to charge more for tickets that are bought closer to the departure date, targeting different consumer segments based on their willingness to pay.

When an Airline Charges a Traveler More for a Ticket