Lecture 24
Lecture 24
Lecture 24
TOPIC
PRICE
DISCRIMINATION
Price discrimination
Price Discrimination is
merely a technical term
meaning differentiation in
price to increase efficiency.
Types of price discrimination
• By Customer
• Incentive Discounts
• Seasonal discounts
Modern Taxonomy
Complete discrimination
Direct segmentation
Indirect segmentation
The hierarchy --
complete/direct/indirect -- is
in decreasing order of
• Profitability and
• Information requirement.
Sales revenue without and with Price
Discrimination
Multiple
Multiple Market
Market Price
Price Determination
Determination
Examples of Price
Discrimination
Travel industry
Retail Incentives
Incentives for Industrial
Buyers
Universal pricing