Types of price discrimination

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Types of price discrimination

  1. 1. Types of Price DiscriminationThere are two types of Price Discrimination: 1. Sale of identical goods (or services) to different customers at different prices.Examples:• A doctor may charge a rich patient 30 eurofor a consultation, while a poor person maybe charged 15 euro for the same service,• Old age pensioners are sometimes offeredservices at reduced rates, Eg dry cleaning andhairdressing.In the above examples, the underlying feature is that the seller (orproducer) charges higher prices for the same good to thosecustomers perceived to be in the best position (ie willing and/orable) to pay such prices, and lower prices to those customers whosedemand is not seen as strong.

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