 Price DiscriminationA. Koutsoyiannis
Chapter 7 in Modern Microeconomics, 1975, pp 192-201 from Palgrave Macmillan Abstract: Abstract Price discrimination exists when the same product is sold at different prices to different buyers. The cost of production is either the same, or it differs but not as much as the difference in the charged prices. The product is basically the same, but it may have slight differences (for example, different binding of the same book; different location of seats in a theatre; different seats in an aircraft or a train). We will concentrate on the typical case of an identical product, produced at the same cost, which is sold at different prices, depending on the preference of the buyers, their income, their location and the ease of availability of substitutes. These factors give rise to demand curves with different elasticities in the various sectors of the market of a firm. It is also common to charge different prices for the same product at different time periods. For example, a new product is often sold at a high price, accessible only to the rich, while subsequently it is sold at lower prices which can be afforded by lower-income consumers. Keywords: Price Elasticity; Demand Curve; Total Revenue; Price Discrimination; Marginal Revenue (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15603-0_7 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-15603-0_7 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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