3 ms·
Price discrimination is a central feature of economic life. Everyone from airlines to your university to Uber does this. The kind you are most familiar with
by huitzitziltzin 4y ago
Price discrimination is a central feature of economic life. Everyone from airlines to your university to Uber does this.
The kind you are most familiar with is the quantity discount from buying a larger package size at the grocery store.
- zeroonetwothree 4y agoBut it’s also cheaper to transport and produce larger package sizes. So it’s not purely price discrimination (I don’t know how much is). I think the canonical example is actually coupons.
- Closi 4y agoIt's important to note that this isn't strictly price discrimination too - it's actually product segmentation. Price discrimination happens when it's the same product sold at different prices (e.g. senior discount for movie tickets) - but actually there IS a difference between a $1 burger at McDonalds and one of the $7 premium ones.