Money in Real Life · 45 sec
Price discrimination
A practical idea for making clearer everyday money decisions.
The useful idea
- The useful idea
Price discrimination, known also by several other names, is a microeconomic pricing strategy whereby identical or largely similar goods or services are sold at different prices by the same provider to
- How it works
different buyers, based on which market segment they are perceived to be part of.
- Why it matters
Price discrimination is distinguished from product differentiation by the difference in production cost for the differently priced products involved in the latter strategy.
Why this matters
Use Price discrimination to compare the trade-offs before committing money.
Try this
Use Price discrimination to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Price discrimination?
- Why it matters
- How it works
- The useful idea — correct
Price discrimination, known also by several other names, is a microeconomic pricing strategy whereby identical or largely similar goods or services are sold at different prices by the same provider to
General education only — not personal financial advice.