Saturday, September 15, 2018

Lets know about Price Discrimination

PRICE DISCRIMINATION:

 In order to maximize the profit when we sale a same product in different prices for different units of goods bought to different customers is is called as Price Discrimination.
There are three types of Price Discrimination:-
* Perfect price Discrimination --> Auctions
* Market/Segment Based Price Discrimination --> Social or Economic discount such as Age based discounts etc.
* Price Discrimination by self selecting --> like Coupons/Cashback etc.

Example:- Ola,uber charges high prices in peak hour. 
                    Source - economicsonline.com
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