Discuss at least two examples of price discrimination It doe

Discuss at least two examples of price discrimination It doesn\'t matter if you were the buyer or the seller in your examples; you can write about any instance of it, so long as it falls under the umbrella of \"price discrimination.\" Do you think that the tactics that the seller(s) employed were effective? Do you think there\'s any way you might have done things differently or otherwise improved upon the employed tactics?

Solution

Answer:

One of the encounters that I for one had was with sharing of Internet benefit with my partner. I was set up to share in excess of 50 percent of the month to month charges, yet my partner was willing just not as much as that. A Broadband supplier, knowing our preferences entered into part-pricing with us. It was found attractive because it satisfied the needs of both of us.

Instead of charging a single fee, he introduced a two-part pricing, one that is more-than- half of the monthly fee (inelastic demand in my case) and less-than-half of the fee (elastic demand for our friend). The provider had gained by way extra surplus that he would have lost if he had charged an uniform price. In this case, the service provider’s tactics proved very effective, and we couldn’t find any other alternative to improve upon.

I had to switch over to unleaded petrol for my car for its performance to be effective. The price ought to be higher than ordinary petrol but the suppliers were selling unleaded petrol at no extra cost. Though it’s a premium product, I could get the product for the same price of petrol.

In this case, though the producer faced different costs, yet I could manage to extract the extra surplus which he would have gained by charging more. This isn\'t really value segregation, yet is referred to be as turnaround value separation.