Price discrimination

When the same product is sold/ supplied at different prices is known as price discrimination.

For example :

Let us take the Famous restaurent Biryanies it has no.of branches in dIfferent states.It provides 10 percent discount to the students .The same resturent doesnt give any discount to normal customers.They are producing the same products at different prices 

Three types of price discrimanation

1)perfect price discrimination:

It occures when firm charges different price for every unit consumed .The firmis able to charge the maximum possible price for each unit when enables the firm to capture all avilable consumer surples for it self 

2)Market/Segment based price discrimination:

It is employed when the firm cannot identify individual demands. But can identify group of consumers that have similar demands.

3.)Self selection price discrimination:

In this case firm offers a menu of differebt types of packages to make consumer to choose different packages.