Price Filtering: Restricting Price Deals to those Least Likely to Buy Without Them

Abstract

Discusses methods of tailoring prices to buyers who differ in their willingness to pay while maintaining a semblance of fairness and uniformity – filtered pricing. Considers microeconomic theory, geographic discrimination, filtering methods such as couponing, skimming, quality and features, sales, as well as newer methods like rebates and price packaging. Surmises that there is a challenge to create new price filtering techniques, without ignoring the ethical questions involved.