price discrimination mirco

Economics
Tutor: None Selected Time limit: 1 Day

What are some examples of price discrimination that you have experienced in the market? What are some advantages of price discrimination for the firm? Consumer? 


Aug 17th, 2015

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Price discrimination is the process by which firms charge different prices for similar products in different markets.

Price discrimination is experienced all over. For example the price of a 500ml coke bottle differs all over in the United states, although in small variations. As you move to other continents the price variations becomes even greater.

Price discrimination is also seen in flactuating train prices depending on the time

Advantages of price discrimination to the firm

-Assists in market segmentation through prices.

-Maximization of profits.and increased revenue

-Customer attraction

Advantages of price discrimination to consumer.

- Availability of goods and relatively fair prices depending on location.

-reduced competition for goods and services as  Price discrimination is one way to manage demand


Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 17th, 2015

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