WHEN SAME PRODUCT SOLD IN VARIOUS PRICES

There is a restaurant, name NH209 near Our college(IBA), which gives discount to the students of IBA but they charge at regular price to other customers. It shows the Price discrimination of that restaurant, where they charge different price for the same product.

 We can take another example of railways, they charge different ticket price for senior citizen, children and adults for the same distance travelling.

So, we can say that “when a seller sales or supplies same product at various prices is known as price discrimination.”

There are three types of price discrimination:

1. Perfect price discrimination (1^st degree):

When we can identify the reservation price of each and every person.

2.Market segment based price discrimination (3^rd degree):

when we focus on market segment for example discount to reserved cast people in india.

3. Price discrimination by self-selection (2^nd degree): various price offers to customer by different market, amazon offers big billion days.