What do Americal Airlines, Walgreens, Staples, Stanford university, Mayo clinic have in common.

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Robert · Accepted Answer

Running Head: PRICING DISCRIMINATION IN PRACTICES 1
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PRICING DISCRIMINATION IN PRACTICES 2 
1) Why do drug firms give discounts voluntarily?  
Answer: 
The drug firms give more discounts because they get more rebates and at the same time 
they focus on increasing their market share. The federal government is providing various 
discounts, and the Medicaid offers larger discounts (Cook, 1999). Most of the insurers, HMOs 
and hospitals have higher negotiating skills to negotiate the price.  
There are more players in the market but at the same, there is more demand for various 
medicines, and there are more drug firms who can supply them. Therefore, to remain competitive 
and to become a market leader in the industry, drug firms provide various discounts on voluntary 
basis to their customers.
2) Do other healthcare providers routinely give discounts to some customers? 
Answer: 
Healthcare providers do provide a discount to certain customers. There are various 
programs every healthcare provider is offering to their customers to attract and get more 
customers. Those customers who are part of these programs get discounts on the selected 
services that they have chosen.  
The healthcare providers get more discounts and rebate from the government, and it 
motivates them to provide a discount to their regular patients (Stanger, 2016). It will ensure that 
more patients are availing their offers and will visit their center and purchase various drugs from 
their pharmacy to get more benefit from the selected plan. Thus, healthcare providers give 
discount.
PRICING DISCRIMINATION IN PRACTICES 3 
3) Why do the uninsured typically pay the highest prices? 
Answer: 
The uninsured are mainly individuals, and they do not have any contact with the hospital 
organization or has the influence to negotiate with the hospital.

What do Americal Airlines, Walgreens, Staples, Stanford university, Mayo clinic have in common.

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