I frequently buy something which then has a rebate offer attached. I must fill in all the information requested, send off the form and then wait 8 weeks for the rebate. This practice is referred to as
A)the hurdle model of price discrimination.
B)exclusive contracting.
C)a profit maximizing markup.
D)network economics.

Question

Quizplus · Accepted Answer

The practice described is an example of the hurdle model of price discrimination, where the seller offers a lower price to those willing to incur the additional costs or effort of redeeming a rebate. This allows the seller to price discriminate between different types of buyers based on their willingness to engage in certain behaviors, like filling out a rebate form and waiting for a refund.

I Frequently Buy Something Which Then Has a Rebate Offer