Price discrimination is a strategy where a seller charges different prices for identical goods to maximize profits. It requires market power, different customer groups with varying price elasticities, and preventing resale. There are three types - personal (based on ability to pay), geographical (based on location), and use-based. The degrees include perfect price discrimination (charging each customer's maximum willingness to pay), dividing the market into subgroups with different prices, and dividing based on location and elasticity of demand.

1. PRICE DISCRIMINATION & DIGREE’S
OF PRICE DISCRIMINATION
Presented By- Jitendrakumar N. Suthar
PROF .RAMKRISHNA MORE ARTS ,COMMERCE & SCIENCE COLLEGE

2. 1.WHAT IS PRICE DISCRIMINATION?
“Price discrimination is marketing strategy
where Seller sell there identical goods at different price range
to the different group of Consumer.”
1. Price discrimination used for obtaining Maximum
Profit and gain the advantage of market or capture the
market.
2. It is mostly used by Monopolist. It is not possible
under Perfect Competition.
3. However the cost of production remain constant.

3. 2.CONDITIONS: PRICE DISCRIMINATION.
•Market Power.
•Different customer Group.
•Resale must be not allowed.
•Existent of Monopoly.
•Different elasticity of demand.

4. 3.TYPES: PRICE DISCRIMINATION.
Personal Geographical
On the Basis of
Use

5. 31.TYPES:PRICE DISCRIMINATION
1.Personal-
• Monopolist/Seller will Charged on the basis of Willingness
to pay.
• Mostly practiced by Doctors and layer.

6. 3.2.TYPES:PRICE DISCRIMINATION
2.-Geographical-
• Monopolist/Seller will Charged a price according
to a Particular Location & Elasticity of Demand.
• It is also Known as Dumping.
• Producer Sell same Goods at different Prices in
Two different Country or Area.

7. 3.3.TYPES:PRICE DISCRIMINATION
3-On the Basis of Use –
• Monopolist/Seller Charged a Price according to
Uses of Goods.
• Eg. Electricity department divided Electricity
Connection into two Sub-Category Industrial
Connection & Residential Connection.
• They Charged Price on The Basis Of use of
Product.

8. 4.Different Consumer Groups:
1st Consumer Group
• Normal Consumer, Rich &
Wealthy etc.
2nd Consumer Group
• Senior
Citizen,Student,Divyang,Vu
nerable Groups & Poor etc.

9. 5.DIAGRAM:
1st Consumer Group 2nd Consumer Group

10. 6.DIGREE’S:PRICE DISCRIMINATION.
1ST Degree of Price Discrimination.
• Monopolist Charged Maximum Price from buyer at his
ability to pay.
• It is also known as Perfect Price Discrimination.
• Monopolist want to end Consumer Surplus.
• Monopolist Exploit Consumer Group to maximize their
Profit.

11. 6A.DIGREE’S:PRICE DISCRIMINATION.
2nd Degree of Price Discrimination.
• Monopolist Divide entire market into Sub-Market &
charged different prices from Different Consumer
Group.
• Monopolist don’t want end consumer Surplus.
• Eg. Indian Railway Sell Same sleeper Class ticket on
Different Prices. ( Tatkal,Premium Tatkal, Senior Citizen
Quota etc.)
• Airlines Industry also Follow this Strategy.

12. 6B.DIGREE’S:PRICE DISCRIMINATION.
3rd Degree of Price Discrimination.
• Monopolist divide entire market into Sub-Market on the
basis of Location and Elasticity of demand.
• Monopolist/Seller want to maximize Profit and
Revenue.
• Eg. Clothing Brand Sells Cloth at high prices in one area
but also Sells same cloth in low prices through their
Factory Outlets.

13. THANK YOU
• References:
1. Micro Economics Analysis: Success Publication
2. Economicsdiscussion.net
3. Investopedia.com