During the holiday season, high-end retailers frequently place a high price on merchandise on weekends and discount the price during the week. They do this because they believe that two groups of customers exist: shoppers with little free time and bargain hunters. Bargain hunters have time to shop around and frequently shop during the week. What do economists call this price strategy used by high-end retailers?

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This pricing strategy is called price discrimination, where the retailer charges different prices to different groups of customers based on their willingness and ability to pay. By charging higher prices on weekends, the retailer aims to capture more revenue from shoppers with little free time, while also attracting bargain hunters during the week by offering discounted prices.

During the Holiday Season, High-End Retailers Frequently Place a High