Economics 101: Price Discrimination | SterlingTerrell.net

Economics 101: Price Discrimination

What is price discrimination?

Price Discrimination is exactly what it sounds like, it is charging different prices for the same good or service.

  • The 10% student discount at the movies, or the matinee price.
  • The senior citizen special at restaurants.
  • In-state tuition rates for college.
  • Cable or phone service prices for new customers.
  • One price if you buy less than 10 units, another price if you buy more than 10 units.