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5 Cards in this Set
- Front
- Back
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Price discrimination def |
When a producer sells the exact same product at different prices to different consumer groups. |
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Conditions for price discrimination |
- producer must be able to set prices, not a price taker - consumers with different PED - must be able to separate consumers so no retailing will happen - |
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1st degree |
When each consumer pays exactly what she/he is ready to pay. Ex: bazaar |
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2nd degree |
When a firm changes prices depending on the amount you purchase. More --> cheaper Ex: mobile data |
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3rd defree |
When consumer are identified in different market segments. (Most common type of price discrimination) Ex: flight tickets, movie tickets |
