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Discussion - 1. How would you classify degrees of price...

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Unformatted text preview: 1. How would you classify degrees of price discrimination? Give an example of each. There are considered to be three degrees of price discrimination the first-degree is meant to gain the greatest amount that a consumer is willing to pay for a product a good example of this would be Priceline.com where you are able to set your own prices, which for most consumers would be what they are willing to pay and the value of that product to them. The second-degree of price discrimination offers the same choices to all consumers; I find the books example to be the best when it describes the different rate plans available to cellular customers. The third-degree of price discrimination is more detailed by determining the groups in which a consumer would be most closely aligned and setting a different price for each one of the groups. An example of third-degree price discrimination would the grouping of college students and non-students; for obvious reasons a college student is going to place a higher value on a...
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