Explain the methods which car dealers use to price discriminate in order to increase their profit margins. Car dealers use a price discrimination strategy in order to maximize their profit. In order to effectively utilize the strategy dealerships will sell similar vehicles at various prices depending on the market.
For example, an individual who looks like they are more financially stable will probably be anchored at a higher price opposed to someone that doesn’t appear to be financially stable and may be anchored at a lower price.
This sort of strategy that is used to discriminate could be based on a variety of factors such age and sex. Explain the difference between animus/stereotypic and statistical (inference) discrimination. Animus
For example, an individual who looks like they are more financially stable will probably be anchored at a higher price opposed to someone that doesn’t appear to be financially stable and may be anchored at a lower price.
This sort of strategy that is used to discriminate could be based on a variety of factors such age and sex. Explain the difference between animus/stereotypic and statistical (inference) discrimination. Animus