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What is Price Discimination about?

Price discrimination is a pricing strategy where a seller sets different prices for the same product or service for different consumer groups. It allows a seller to capture consumer surplus and increase total revenue. There are three main types of price discrimination - first degree where each consumer pays the maximum they are willing, second degree where versions of the product differ in quality or quantity, and third degree where different groups are charged different fixed prices.

Author

donboscocta

Language

EN