price discrimination definition

Price discrimination definition the practice of offering identical goods to different buyers at different prices when the goods cost the same. Industrial and household.

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Markets can be separated in a number of ways including different geographical locations eg.

. Domestic and foreign the nature of the product itself eg. The meaning of price discrimination is the offering of similar or identical goods at different prices to different buyers. Price discrimination results in greater revenue for the firm. For example a doctor charges different fees for the same operation from rich and poor patients.

Price discrimination synonyms price discrimination pronunciation price discrimination translation English dictionary definition of price discrimination. Personal price discrimination refers to the charging of different prices from different customers for the same product. Price discrimination the ability of a supplier to sell the same product in a number of separate MARKETS at different prices. Original and replacement parts for motor cars and users requirements eg.

Price discrimination can take many. Learn about the definition and types of price discrimination and check. Price discrimination is of following three types. Price discrimination is effective only if customers cannot profitably re-sell the goods or services to other customers.

A seller charging competing buyers different prices for the same commodity or discriminating in the provision of allowances compensation for advertising and other services may be violating the Robinson-Patman Act. Price discrimination can be defined as a pricing strategy that is used by sellers to sell identical goods and services at different prices to a diverse group of customers based on various conditions such as demand of the product the willingness of customers to pay. Price discrimination occurs when customers in different market segments are charged different prices for the same good or service for reasons unrelated to costs. For example hotel rooms airline tickets and professional services all offer different prices for different customers.

N economics the setting of different prices to be charged to different consumers or in different markets for the same goods or services Collins English. Price discrimination is the pricing strategy in which similar goods or services are sold to customers at different prices. Guide to Antitrust Laws. Price discrimination is a kind of selling strategy that involves a firm selling a good or service to different buyers at two or more different prices for reasons not necessarily associated with cost.

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