PRICE DISCRIMINATION:
It refers to
changing of different prices by monopolist for the same product.
Definition:
“Price
discrimination exists when the same product is sold at different prices to
different buyers.” –Koutsoyiannis
There are
three types of price discrimination:
Ø Perfect Price Discrimination.
Ø Market based price discrimination.
Ø Price discrimination by self
selection.
Perfect price discrimination: Charging of
different price from different person according to its willingness.
EXAMPLE: Like my father is business man so
whenever he go for purchasing of medicine from a wholeseller , he get them in a
lesser price as compared to the MRP, but if the same thing any non business man
person will do he have to pay the actual price.
Market based discrimination: charges
different prices in different markets for the same product.
EXAMPLE: Few days ago the Rakshabandhan festival was. As
I was far away from my brother and cousin’s , so I courier them the rakhi . one
of my cousin lives in UK, so when I went to courier services he told it’ll
charge near 2k and when I asked about the charges within the India states he
said it’ll hardly take 300/- only.
Price discrimination by self selection: charges
different prices for the different uses of the same commodity.
EXAMPLE: Like so many people used to go Big Bazzar. There
was a scheme few months before where if we bring our old cloths and electric
appliances to them they’ll give us coupons in exchange of it which we can use
it on our next purchase.
Another thing I have experienced when I purchased
my phone with credit card so their was a cash back of Rs. 3000.
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