ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different market segments.

Detailed explanation-3: -First degree is practiced by lawyers and doctors. ii. Second-degree Price Discrimination: Refers to a price discrimination in which buyers are divided into different groups and different prices are charged from these groups depending upon what they are willing to pay.

Detailed explanation-4: -Price discrimination examples For example, when a consumer purchases airline tickets several months in advance, they will typically pay less than a consumer who purchases a ticket for the same flight two days before.

Detailed explanation-5: -3. Third Degree Price Discrimination. Also known as group price discrimination, third-degree price discrimination involves charging different prices depending on a particular market segment or consumer group. It is commonly seen in the entertainment industry.