Price discrimination explains us the same product can be sold at different prices at different times according to the service they provide or according to the goods they bought or according to the customers tastes and preference where market stands as a Monopoly.
In this price discrimination we have 3 degrees in total to explain the bias of prices that can be observed in the market daily: 1) 1st degree
2) 2nd degree
3) 3rd degree
Example : Prices of toys for children
1st Degree : In this discrimination we can observe the suppliers who identifies the customers who are willing to pay for an item in the market. This can be also called as Perfect Price Discrimination which can be called with a perfect name called Auction.
Example : Gym prices, Private school prices
2nd Degree : This market concentrates on people who actually wants to buy the products in bulk by giving them with offers, coupons, cash backs etc... which attracts more customers who are selective in their tastes and preferences.
Example : Reliance mart provides with many offers, coupons. Recently on Raksha bandhan day they offered with coupons from september 1 to september 16th which attracted many youth to buy things where they can get Rs.1000/- shopping for free.
3rd Degree : This degree of market mainly go with certain group of people who are seeking for buying items in bulk with wholesale price. This can also be said as accordibg to age, gender, social discrimination, reservations, castes, religions etc...
Example : Government books for government school children.
In this price discrimination we have 3 degrees in total to explain the bias of prices that can be observed in the market daily: 1) 1st degree
2) 2nd degree
3) 3rd degree
Example : Prices of toys for children
1st Degree : In this discrimination we can observe the suppliers who identifies the customers who are willing to pay for an item in the market. This can be also called as Perfect Price Discrimination which can be called with a perfect name called Auction.
Example : Gym prices, Private school prices
2nd Degree : This market concentrates on people who actually wants to buy the products in bulk by giving them with offers, coupons, cash backs etc... which attracts more customers who are selective in their tastes and preferences.
Example : Reliance mart provides with many offers, coupons. Recently on Raksha bandhan day they offered with coupons from september 1 to september 16th which attracted many youth to buy things where they can get Rs.1000/- shopping for free.
3rd Degree : This degree of market mainly go with certain group of people who are seeking for buying items in bulk with wholesale price. This can also be said as accordibg to age, gender, social discrimination, reservations, castes, religions etc...
Example : Government books for government school children.
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