Limition And Definitions Of Price Discrimination In The Airline Industry
716 Words3 Pages
Price discrimination can be observed in many industries it involves charging different prices to various groups of consumers for the same items of products. It can be seen and well known that the airline industry in every country has been practicing the price discrimination for many years and other industries try to practice in the same way. In the essay will examine by using economic theory to explain the definition and importance of price discrimination, the various kinds of price discrimination and more concern about the details in the third degree of price discrimination.
However, This essay will answer why the local stores are operated by national supermarket chains charge the customers a higher price than outside the town and larger stores while the writer 's view and conclusion will be drawn.
According to Pigou(1920),Price discrimination is generally defined as charging a sigle price for a product or service despite the fact that the costs of supply are different for different customers while Tejvan (2014) supports that the price discrimination is referred to charge different prices to different consumers for the same good and charging at the different price it depends on several criteria such as the quantity bought, time of use, age profile and when unit is bought. In respect of importance, we can separate in two sides. Firstly in the groups of consumers, some of them can get the benefits from the price discrimination while some consumers cannot. Secondly,