Concept information
Preferred term
cross-subsidization
Definition
- Cross-subsidization is the organizational practice that uses a portion of revenue from some customers and applies it toward costs undertaken in activities for other customers. With cross-subsidies, a business may charge some customers more than the amount it requires to serve them so that its other customers can pay less. [Source: Encyclopedia of Business Ethics and Society; Cross-Subsidization]
Broader concept
Belongs to group
URI
https://concepts.sagepub.com/social-science/concept/cross-subsidization
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