Section 5
Price Discrimination
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
3 concepts
Elasticity Conditions for Price Discrimination
In a competitive market, price discrimination occurs when identical goods and services are sold at different prices by the same provider.
Analysis of Price Discrimination
Price discrimination is present in commerce when sellers adjust the price on the same product in order to make the most revenue possible.
Examples of Price Discrimination
The purpose of price discrimination is to capture the market's consumer surplus and generate the most revenue possible for a good.