Price Discrimination Elasticity Conditions for Price Discrimination In a competitive market, price discrimination occurs when identical goods and services are sold at different prices by the same provider. Learning Objectives Examine the use of price discrimination in competitive markets Key Takeaways Key Points In pure price discrimination, the seller will charge the buyer the absolute maximum price that he is willing to pay. Companies use price discrimination in order to make the most revenue possible from every customer. Price discrimination is used throughout industries and includes coupons, premium pricing, discounts based on occupation, retail incentives, gender based discounts, financial aid, and haggling. Industries known for using price discrimination to maximize revenue include airlines, pharmaceutical manufacturers, and textbook publishers. Price Discrimination In a competitive market, price discrimination occurs when identical goods and services are sold at different prices by the same provider.
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