Are loyalty reward programs a form of price discrimination?

Becoming a card-carrying member of your favorite businesss loyalty program is getting more rewardin Show more Becoming a card-carrying member of your favorite businesss loyalty program is getting more rewarding-even as many stores ditch the actual cards themselves. The aim: keep people from browsing in-store and buying elsewhere. The latest loyalty programs reward members with exclusive coupons and sales often sent directly to shoppers phones when they walk in to a store or check in via social media. Few programs require physical cards these days. Instead identity codes are scanned from a phone or app or linked to a credit or debit card. The interesting issue is why stores offer loyalty rewards rather than lowering prices to all consumers. Read WSJ article New Rewards Sweeten Retail Loyalty Plans by: Kelli B. Grant May 30 2012 (pdf). In this discussion answer the following questions in your post: https://bbaddins.schoolcraft.edu/addins/econ202v2/docs/mod09LoyaltyPlans.pdf 1. Why do retailers offer loyalty programs? 2. Are loyalty reward programs a form of price discrimination? Show less

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