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PRICE DISCRIMINATION

PRICE DISCRIMINATION

SHYAMRAJ
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PRICE DISCRIMINATION

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  1. Price Discrimination PREPARED BY SHYAM RAJ P 1ST MBA CMS NILESHWAR

  2. Price Discrimination Price discrimination or price differentiation is a pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider indifferent markets or territories.

  3. TYPES OF PRICE DISCRIMINATION • Personal Discrimination • Local Discrimination • Trade Discrimination • Time Discrimination • Age Discrimination • Size Discrimination

  4. Personal Discrimination When a monopolist charges different prices from different customers for the same product or services , it is called Personal Discrimination. It may be on the basis of income of the consumer.

  5. Local Discrimination The monopolist may charge a low price in one market and a high price in another market for the same commodity.

  6. Trade Discrimination Here monopolist charges different prices for different uses. Eg: Electricity board

  7. Time Discrimination Here price of the same commodity differs at different times.

  8. Age Discrimination If discrimination on the basis of age, It is called age discrimination.

  9. Size Discrimination It is the discrimination on the basis of volume of transaction. I.e.; Price in retail market is higher than the whole sale market.

  10. Degrees of Price Discrimination • First degree price discrimination •  Second degree price discrimination • Third degree price discrimination

  11. First degree price discrimination When a monopolist charges different prices from different persons for the same commodity or services is known as Price discrimination of First degree.

  12. Second degree price discrimination Here the monopolist divides the buyers in to different classes and the price may be charged on the basis of the classes. E.g.: Railway

  13. Third degree price discrimination Here also the monopolist divides the customers in to two or more groups of markets on the basis of elasticity of demand and charges different prices from different markets.

  14. THANK YOU…

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