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Price Discrimination (Economics) - Coggle Diagram
Price Discrimination (Economics)
Possible Explorations
Conditions necessary for Price Descrimination
The sellers must be able to recognize differences in customer demand
The sellers must be able to prevent the resale of their given product
If profit for separating markets is larger than keeping markets combined.
Types of Price Discrimination
When a company charges a different price for different quantities. E.g: Bulk packages, etc
Third degree: Third-degree: When a company charges differing prices to different consumer groups. For example, movie theatres divides prices into three categories; children, adults and seniors.
First degree: When a company charges different prices for every goods or services.
Examples
Airline ticketing
Pharmaceutical Industry
Pharma companies charge more for drugs in wealthier countries than poorer ones
Market failure
Underproduction of merit goods
Creation of monopolies
Information needed for investigation
Price of goods
Demand for goods
Inflation rates
Case studies (within 5 years)