Assume you have four tickets to a U2 concert.You decide to sell each of them separately on an auction site such as eBay.Your auctions represent
A) price differentiation.
B) perfect price discrimination amongst those who bid for your tickets.
C) perfect price discrimination amongst all people who buy tickets for the concert.
D) an illegal act, subject to state and federal prosecution.

Question

Quizplus · Accepted Answer

Selling each ticket separately on an auction site allows the seller to charge each buyer the maximum they are willing to pay, which is a form of perfect price discrimination among those who bid for the tickets.

Assume You Have Four Tickets to a U2 Concert