Price Discrimination
Price discrimination is a pricing strategy that charges different prices to different customers for the same product or service. It is a common practice in many industries, including retail, healthcare, and entertainment. Price discrimination is based on the idea that customers are willing to pay different prices for the same product or service depending on their individual circumstances. For example, a company may charge a lower price to students or senior citizens than it does to other customers.
History of Price Discrimination
Price discrimination has been around for centuries. In the early days of the industrial revolution, it was used to maximize profits by charging different prices to different customers. In the late 19th century, economists began to study the concept of price discrimination and its effects on the economy. In the 20th century, price discrimination became more widespread as companies began to use it to increase their profits. Today, price discrimination is a common practice in many industries.
Comparison Table
| Group | Price |
|---|---|
| Students | $10 |
| Senior Citizens | $8 |
| General Public | $12 |
Summary
Price discrimination is a pricing strategy that charges different prices to different customers for the same product or service. It is a common practice in many industries, including retail, healthcare, and entertainment. For more information about price discrimination, you can visit websites such as Investopedia, The Balance, and the Federal Trade Commission.
See Also
- Price Elasticity
- Monopoly Pricing
- Oligopoly Pricing
- Perfect Competition
- Price Skimming
- Price War
- Cost-Plus Pricing
- Dynamic Pricing
- Value-Based Pricing
- Discount Pricing
