Price transparency refers to the ability of merchants to segment the market into groups willing to pay different prices.

Question

Quizplus · Accepted Answer

Price transparency refers to the degree to which prices are visible and easily comparable among different sellers or retailers. It does not refer to the ability of merchants to segment the market into different groups for pricing purposes. In fact, price discrimination (charging different prices to different groups of customers) is generally associated with low price transparency, as it allows merchants to charge different prices without fear of customers comparing prices and shifting their purchases to lower-priced sellers.

Price Transparency Refers to the Ability of Merchants to Segment