Price discrimination
Price discrimination means charging a different price for the same product for customers.
example: Electricity Board of India charges different price for individuals, rural consumption, industrial consumption and urban consumption
Degrees of price discrimination
First degree price discrimination: it is also called as perfect price discrimination. when price changes at its maximum level for every single unit consumption is called first degree of discrimination.
Ex: we can see change in the bus ticket fare as according to the demand.
Second degree price discrimination: when different prices charge for consumption of the different quantity of goods is called as second degree of price discrimination.
Ex: traders charge different price for different quantity of goods purchased by the customers.
Third degree of price discrimination: when seller divide the customers in different groups and subgroups and charger different price according to the groups and subgroups is called as the third degree of price discrimination.
Ex: different price charged for movie tickets.
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