Question

Write about Price Discrimination in detail.

Answer 1

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.

Answer 2

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. 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.Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand.

The term differential pricing is also used to describe the practice of charging different prices to different buyers for the same quality and quantity of a product,but it can also refer to a combination of price differentiation and product differentiation.Other terms used to refer to price discrimination include equity pricing, preferential pricing, dual pricing and tiered pricing.Within the broader domain of price differentiation, a commonly accepted classification dating to the 1920s is acceptable in economy