Price Discrimination
Price
discrimination is a price strategy of different firms where identical or
similar goods are given at different prices to the consumer.
Exploiting
demand characteristics to allow the same product to be sold at various prices unrelated to the cost of supply.
Example:
When I used
to play cricket my cricket club used to charge Rs 600 from non-government
employee’s son and it charges Rs 400 from the government employee’s son.
Charging 8 Rs for a cup of coffee from the students in the school
canteen, whereas charging 10 Rs from other people for the same cup of coffee is
another example of price discrimination.
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