Economics homework help

Class, Home Depot, a home and garden supply store, offers a 10% discount to active and retired military personnel, reservists, and to their families. Home Depot certainly has some market power, and can identify military personnel using their military identification cards. But doesn’t arbitrage seem possible? Some possible reasons why this program doesn’t get abused:

  • A 10% discount is relatively small.
  • Many military personnel would consider it “dishonorable” to abuse the discount privilege.
  • Transaction costs (the inconvenience of having someone else buy goods for you) are high.

Can you think of other examples of price discrimination?

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now