PRICE DISCRIMINATION

Is Price Discrimination a good business practice?



Is Price Discrimination A Good Business Practice?

Introduction

Price discrimination is to assign different prices to the same well according to the various parameters fixed by the company. There are two kinds of discriminate elements, which are information on demand and arbitration. Information on demand offers the features of the market, whereas, arbitrage is the ability of consumers to resell the product and store goods.

Discussion

The discriminating factors of information and arbitrage can be further given three types of discrimination; First-Degree Discrimination, Second-Degree Discrimination, and Third-Degree Discrimination.

First-Degree Discrimination

First-degree discrimination associated with perfect ...