Question

1. Does price discrimination increase or decrease the efficiency of the market for college education? Why?

2. Is college price discrimination fair? (Start by defining “fair.”)

Answer 1

1.Price discrimination increases the efficiency of the market of college education as college education is preferable to all but as it may not necessarily be accessible to all, price discrimination makes it accessible to larger masses. Thereby, increasing the efficiency of education market.

2. Fair means justifiable to all. College price discrimination is fair because if discrimination is taking place on the basis of student's efficiency and one gets scholarship on the basis of their capabilities or becomes justifiable as, these kinds of test are open to all and everyone gets the "fair" chance.