Targeted Price Discrimination Paper

People are aware when they fly that they might be seated next to someone that might have paid half the price that they did, or even one third of the price for the same airplane ticket. However, to what extent it is a result of targeted price discrimination or simply demand and supply, is a question worth investigating. Price discrimination is “the action of selling the same product at different prices to different buyers, in order to maximize sales and profits” (Blink and Dorton 2012, pg.133). In order to price discriminate certain requirements must exist. These include varied consumer elasticities, the ability to separate the markets, price setting ability and lastly, it must be an identical product which cannot be resold (Blink and Dorton