Economist Reuben Kessel wrote an influential article in 1958 analyzing price discrimination by medical care providers. Kessel interviewed several doctors and dentists in Los Angeles, and found that these providers often provided fee-for-service treatment to traveling business professionals but charged each patient a different amount. These health care providers told Kessel they had their receptionists see the make of car the individual was driving when determining the fee (along with other information the provider gleaned about the client). Assume this information revealed each client?s willingness to pay. This is an example of ________.

Question

Quizplus · Accepted Answer

This is an example of first-degree price discrimination because the healthcare providers are charging each patient a different amount based on their perceived willingness to pay, which is determined individually for each client.

Economist Reuben Kessel Wrote an Influential Article in 1958 Analyzing