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What is price discrimination?

Md. Saifur Rahman

What is Price Discrimination?

Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to. In pure price discrimination, the seller charges each customer the maximum price they will pay. In a more common form of price discrimination, the seller places customers in groups based on certain attributes and charges each group a different price.

Types of Price Discrimination

There are three types of price discrimination. They are -

a) First-degree or perfect price discrimination,

b) Second-degree and

c) Third-degree.

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