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price discrimination
(redirected from Price targeting)

   Also found in: Wikipedia, Hutchinson 0.04 sec.

price discrimination

Practice of selling goods or services at different prices to different buyers, even though sales costs are the same for all the transactions. Buyers may be discriminated against on the basis of income, ethnicity, age, or geographic location. For price discrimination to succeed, other entrepreneurs must be unable to purchase goods at the lower price and resell them at a higher one.



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Schnadt and Whittaker suggest as a possible alternative system a "compensated dollar" type of rule (or, in their terminology, a gold price targeting rule) which requires the central bank not to peg the price of an anchor as such, but to peg the price of the MOR and periodically alter that price in response to the deviation of a chosen price index from its target value.
 
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