This article will guide you about how price discrimination takes place under dumping. Price discrimination is said to occur when goods are sold at a higher price in the home market but at a lower price in the foreign market. This sort of the international price discrimination is often referred to as ‘dumping’. We are considering a situation in which [...]
The below mentioned article provides quick notes on inter-temporal price discrimination. Inter-temporal price discrimination is an important pricing strategy closely related to third- degree price discrimination. Here consumers are separated into different groups with different demand elasticities by charging different price at different points in time. Inter-temporal price discrimination can be seen in Fig. 9.12. Initially, D1 is the (inelastic) [...]
The following points will highlight the three main forms of price discrimination. Price Discrimination Form # 1. First-Degree Price Discrimination: A firm would wish to charge a different price to different customers. If it could, it would charge each customer the maximum price that the customer is willing to pay, which is known as reservation price. The practice of charging [...]