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Price discrimination

Price discrimination: Managerial Economics
Price discrimination: Managerial Economics

In many markets, it makes sense to charge different prices for very similar services and products. This so called price discrimination captures more value from a less price-sensitive segment and more sales volume from a more price-sensitive segment. We see price discrimination everywhere. A student or senior citizen discount is a price discrimination. A loyalty card discount is a price discrimination.

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Skill Level Intermediate
1h 20m
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Business Accounting Management Leadership

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