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> price discrimination for those in wealthier neighborhoods. In the case of this Aldi price map, they are doing regional pricing - it would seem that every sto
by Kon-Peki 3y ago
> price discrimination for those in wealthier neighborhoods.
In the case of this Aldi price map, they are doing regional pricing - it would seem that every store in an area has the same price regardless of neighborhood wealth for the individual store. So you get naval oranges in Los Angeles at $1.89, $2.39 in Chicago, and $2.99 in New York City (and Houston).
The difference probably has a lot to do with the cost structure for operating the distribution network. If you switch to the organic pasta sauce, it appears that the price is the same $1.99 everywhere except Los Angeles, where it is $2.19. Their oranges are likely coming from California and their pasta sauce is coming from somewhere east of the Mississippi.