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Price discrimination is an anticompetitive business practice which is common especially when the economic wellbeing of the customers is low as it has been due to economic recession. Price discrimination arises when identical goods and services are provided at different price to different buyers or uncompetitive pricing of goods and services for the same market against other competitors. For the purpose of this paper I shall critique an article of price discrimination by Wal-Mart Stores, Inc which is authored by Dukes, Anthony.
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This because United States antitrust law states that such practices are unlawful and they would be found guilt of violating the antitrust policy (Einer, 2003). This could be viewed as unfair because Wal-Mart is capitalizing on the inefficient compactors by using its business prowess to lower its operational costs as possible so that it would offer their goods and services at a competitive price so as to tap a large market share. These would be argued that Wal-Mart is getting better deals because it is getting goods and services in large amount so it is being discounted.
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Temptations of companies to lower their prices in an uncompetitive manner to lock their market and tap more customers are high by use of technology because it is unnoticed. So it would be even more difficult in future to know cases of price discrimination. The law of price discrimination should be enforced despite of it being difficult to know those who are violating it so that there is a good business environment, which all players compete favorably.
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