Saturday, September 8, 2018

Price Discrimination

Exploiting demand characteristics to allow the same product to be sold at various prices unrelated to the cost of supply.

In practice, a single consumer may be charged different prices for different units of a good bought or different consumers may be charged different prices for the same product or service.

For example - Customers who buy airline tickets months before the journey pay substantially less amount than the people who buy the ticket at the last moment.

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