PRICE DISCRIMINATION          

·       Price discrimination is defined as a firm or any business industry charging different consumers different prices for a same particular product.

·       Price variation don’t fully reflect marginal cost of supplying a product.

·       In pure price discrimination , the seller or company will charge the buyer the absolute maximum price that he can pay. Companies use price discrimination in order to make the most possible revenue possible from every costumer.

·       There are some industries who frequently uses this price discrimination to maximize revenue . 

·       Ex: airlines , pharmaceutical manufacturer , text book publisher.

·       Price discrimination cant always remain the same as product differentiation where the quality & characteristics vary by the type of the costumer.

·        There are three basic terms which plays a vital role in price discrimination.

·       Incentive : something that motivates and encourages a person

·       Price discrimination: this is the practice of selling identical goods or services at different prices from the same provider.

·       Revenue: the total income received from a given source.