Also, some customers with relatively inelastic demands may acquire a strong incentive to seek alternatives if charged higher markups, thus undermining the method.
Some may wonder how this lesson relates to the fortunes of wildly successful companies like Intel and Rolex, which charge huge markups.
The study found that 43.3 percent of black buyers were charged markups, compared with 22.2 percent of whites.
Sales were also limited because of dealer tactics, such as initially charging large markups and denying requests for test drives of the vehicle.
They warn that corporations could buy several dealerships in a city, for example, and use their greater market share to charge larger markups.
The issue is blocking competitive video and charging 1,000 percent and higher markups on bandwidth that are unacceptable.
It deals with the fact that the customers were charged excessive markups from market prices.
(Decorators often charge markups on work and furnishings.)
With comparison shopping so difficult, dealers can charge large markups, especially on lesser-quality bonds, and generally get the better of any bargain.
That has allowed refineries to charge higher markups for gasoline and other refined products.