Price Discrimination
Price discrimination is the strategy or you called action of
selling of one product to different purchasers at different prices to get
maximum profit and sales.
Types of Price Discrimination
1. Personal Price Discrimination:
In this discrimination, for the same
product different prices are charging from different customers.
Eg. - Auction.
Example-
Doctor charge different fees from poor and rich people for the same operation.
2. Market Based Price Discrimination:
In this discrimination, monopolist charge
different price in different market for the same product.
Eg. -
Age based discounts, Flipkart
3. Price Discrimination by Self Selection:
In this discrimination, monopolist demand different
amount for the different uses of the same
commodity. It is also called price
discrimination according to use.
Eg. -
Coupons, Cashbacks.
Example: When I
was 14 years old, one day my family decided to go for the movie near Inox. When
we reached to Inox, box office cashier asked my father that how many tickets he
wants. He said four tickets including 14 years old child. So, box office
cashier told that you have to pay Rs.120 for the child and Rs.240 per person
for adults. He had given all the four tickets in the same row. This example is
based on the market based price discrimination.
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