Management Homework Help
Hi, I have a question about discrimination, if lets say Budbeer the beer producer in Louisiana market, competes
Hi, I have a question about discrimination, if lets say Budbeer the beer producer in Louisiana market, competes
with local brewers such as ABC, and XYZ. And lets say that Budbeer typically charged a higher price than its regional competitors, traditionally about 60 cents more per case, and suddenly they began cutting their price in the Louisiana market to the point where its price was lower there than anywhere else. Wile Budbeer did reduce its price, the price never fell below that charged by the regional competitors, do you think that Budbeer engaged in price discrimination? In my opinion I would say yes because they are only offering that price to that specificmarket that is Louisiana. What defenses would be available to fight this? I really can’t come up with any defense other than Budbeer is located in Louisiana and therefore their cost to sell there is cheaper. I still dont think that is a strong enough defense. Can you help me with this question?