CASE QUESTIONS :
1. What are the conditions for a successful implementation of price discrimination? In your
opinion, can price discrimination help increase Jason’s profits? Why or why not?
2. Which of the companies mentioned in this case – Orbitz, Expedia, Hotels.com, Home
Depot, Budget – actually uses price discrimination? Provide argumentation to support your
3. Should Jason experiment with first-degree price discrimination? Why or why not? Which
type of price discrimination would you recommend Jason consider?
4. Do the Internet and e-commerce make the implementation of price discrimination easier
or harder for sellers? Provide your argumentation.
5. When implementing price discrimination for Budget car rentals, for which customer
groups would you charge higher prices and for which lower? What could be the rationale
for the price differences reported in the case?
6. In your opinion, are price discrimination practices ethical? Is price discrimination good or
bad for the society? Should it be illegal to engage in such practices? If Jason decides to go
that route, should he alert his customers to the fact that he uses these practices?
7. If Jason uses price discrimination, what criteria do you recommend he uses to
estimate his customers’ willingness to pay?
8. The case mentions frequent flyer programs. What is the rationale for the firms to offer
such programs? Would you recommend Jason to implement a similar scheme
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