In economics price discrimination is strategy used by seller to charge different price for same commodity to the customers.The seller charges maximum price for the customers who are willing to pay then the customers are grouped according to their purchasing power.
Lets take the example of Indian trains like duranto which charges high at more demand situation and in weekends or festival times the prices are high.
3 categories of price discrimination
1.perfect price discrimination
a.auctions
2.Market/segment based price discrimination
a. Agro based discount
b.Social/Economic reservation.
3.Price discrimination by self-selection
a.Coupon
b.Cash back
Lets take the example of Indian trains like duranto which charges high at more demand situation and in weekends or festival times the prices are high.
3 categories of price discrimination
1.perfect price discrimination
a.auctions
2.Market/segment based price discrimination
a. Agro based discount
b.Social/Economic reservation.
3.Price discrimination by self-selection
a.Coupon
b.Cash back
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