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What You Don't Know Can Cost You: A Web‐Based Experiment in Price Discrimination
Author(s) -
Hudson Darren,
Lusk Jayson
Publication year - 2004
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/j.1467-9353.2004.00187.x
Subject(s) - business , need to know , price discrimination , economics , marketing , world wide web , computer science , computer security
This paper presents a Web‐based experiential learning tool to assist instructors in conveying the central principles of price discrimination under asymmetric information. The game allows students to make monopoly‐pricing decisions when the characteristics of individual consumers are not known. The Web‐based approach allows for involvement by all students in the class and can be used in or out of class as a support for classroom lectures.