Price discrimination: the legal boundaries of supply and pricing

Abstract

This paper analyzes the outcome of price discrimination and geo-discrimination behaviors in the legal system. By means of de­ductive method and case study, while based on Barros Carvalho’s works on a “logical-semantic constructivism” as a reference system, we argue that, even though such practices may be seen as illegal first-hand, they are possible to be recog­nized as lawful by taking into account certain premises. As a basis for this paper, we studied the complaint filed against Decolar.com and the case related to the use of cookies to support the dynamic pricing of airfares, since those practices have been regarded as an intervention to the protection of consumers’ rights. The paper con­cludes that, in order to establish whether price discrimination is illegal or not in a specific case, it is necessary to assess the behavior in face of the structures established in the legal system.