What is Price Discrimination? (With Real World Examples) | From A Business Professor

Price discrimination is a pricing strategy employed by businesses to charge different prices for the same product or service to different groups of customers. This strategy is based on the idea that different customers are willing to pay different prices for the same offering, and it allows businesses to capture a larger portion of consumer surplus, which is the difference between what consumers are willing to pay for a product and what they actually pay. So what's the rationale behind this strategy? What are the primary forms of price discrimination? Can we find real-world examples, and what are the associated advantages and disadvantages? In this video, I will explore these questions with you.