Disadvantages (Demerits) of price discrimination
- Price discrimination leads to the provision of poor quality services especially to the low income earners. This is because there is no competition since it is carried out by a monopolist.
- Price discrimination based on dumping retards the development of young industries in a country where the commodities are dumped. This is because consumers may prefer the cheap dumped commodities as compared to the expensive locally produced commodities.
- Price discrimination on the international market leads to the consumption of harmful and expired commodities for example cheap expired drugs or food stuffs sold to developing countries by developed countries.
CATEGORIES Economics
TAGS Dr. Bbosa Science
Thank for the knowledge it’s so helpful