Saturday, September 8, 2018

Geographical price discrimination


Many of us might have seen the drastic change in price of commodities with change in the location (before introduction of GST). I would like to share one of my travel experiences. When I was in the third year of under graduation, my parents shifted to Dehradun from Raipur. I was in Jabalpur which is a decently beautiful place. But, it was Dehradun. It was a dream come true. I was excited to visit the place more than visiting my parents.

The first time I went to Dehradun, I was excited about the clothes I would buy. Being a home to a lot of Tibetan population, the place had a lot of attractive and exclusive art. And the best part is, the clothes were surprisingly cheaper than what we could get in the different places I have ever been to. Even the branded outlets offered relatively lower cost products.

I could easily get 5 sweaters at a very reasonable, satisfactory price which would have been impossible in any other place. This is an example of geographical price discrimination. Sadly, after GST, now we can just take the advantage of such pricing on limited local clothes.


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