When the hurdle method is used to price discriminate, buyers
A)are put into a price group based on an observable, personal characteristic.
B)are unaware that they are paying a different price than some of the other buyers.
C)sort themselves into reservation price groups based on their willingness to overcome the hurdle.
D)face insurmountable obstacles to accessing the product.

Question

Quizplus · Accepted Answer

The hurdle method involves setting a price for a product and adding an additional condition or "hurdle" that buyers must overcome to access the product. Buyers who are willing to overcome this hurdle (such as paying a higher price, providing personal information, etc.) are considered to have a higher reservation price and thus are in a different price group. Therefore, buyers sort themselves into reservation price groups based on their willingness to overcome the hurdle.

When the Hurdle Method Is Used to Price Discriminate, Buyers