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A Hotel with Market Power Charges Customers Who Check in Before

question 39

Essay

A hotel with market power charges customers who check in before 5:00 pm more than those who check in after 5:00 pm.Those who check in early are much more likely to use the hotel's pool.Explain why this price difference may not be price discrimination.


Definitions:

Forethought

The thoughtful consideration and planning of actions in advance, often to achieve a desired outcome or avoid negative consequences.

Original Equipment Manufacturer

An entity that produces parts and equipment that may be marketed by another manufacturer.

Producer

An individual, group, or organization that creates goods or provides services, typically for sale.

Business Customers

Organizations that purchase goods or services for use in the production of other services or products that are sold, rented, or supplied to others.

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