price discrimination
Noun
Meaning
price discrimination (countable and uncountable, plural price discriminations)
(economics) The practice of charging different prices to different categories of consumers.
Examples
There is no such thing as a gas market prices, because there is no such thing as gas market. What they are doing to Ukraine is obvious price discrimination.
A company that does not engage in price discrimination will charge the profit maximizing price, P*, to all its customers.
A company must have some degree of market power to practice price discrimination.
A company wishing to practice price discrimination must be able to prevent middlemen or brokers from acquiring the consumer surplus for themselves.
A price discrimination strategy is to charge less price sensitive buyers a higher price and the more price sensitive buyers a lower price.
Any company that has market power can engage in price discrimination.