Definition Of Discrimination Pricing

Consider a firm that charges a single price for an apple.

Definition of discrimination pricing. Price discrimination in increasing a firm s profitability. 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. Typically the customer does not know this is happening. Price discrimination is a pricing strategy that charges customers different prices for the same product or service.

Price discrimination is a pricing policy where companies charge each customer different prices for the same goods or services based on how much the customer is willing and able to pay. It is a microeconomic pricing strategy where the pricing mechanism depends upon the monopoly of the company preferences of the customers uniqueness of the product and the willingness of the. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Now consider a firm that is able to charge a different price to each customer.

Discrimination pricing is the practice of charging different prices to different customers for the identical goods or services sold by the same supplier. Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets. The act of selling the same product to different groups of customers at different prices.