Price discrimination occurs when online retailers adjust their rates based on perceived customer willingness to pay, often leading to inconsistently high prices for consumers from affluent areas.
Bay Area travelers are often offered hotel rates significantly higher than those in less affluent regions, exemplifying a broader trend of price discrimination in online travel marketplaces.
Eric Goldman noted that while price discrimination feels morally questionable, it remains legal and is prevalent across various online marketplaces, particularly within the travel sector.
This phenomenon of price discrimination is especially noted in the travel industry due to its luxury nature and the active online communities focused on finding the best deals.
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