Topic10_Price Discrimination

Senior citizen and charging different prices to each

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senior citizen) and charging different prices to each group. Most common examples: Airlines economy and business class fares, premium vs. non-premium liquor, discounts to students and senior citizens, C 9 Coupons.
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Third Degree Price Discrimination Third-Degree Price Discrimination Multimarket Price Discrimination is more Multimarket Price Discrimination is more common as monopolist is more likely to know which group of consumers have more inelastic or elastic demand. Firms use observable or distinguishable characteristics (e.g., age, locations). Another way is let the consumers self select h t ki d f th E l what kind of consumers they are. Examples : coupons, airline tickets (economic class vs. business class) etc 10 business class), etc...
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