Price Discrimination

Price Discrimination refers to a tendency in the market where different prices are charged from different sets of customers on factor other than cost. Price Discrimination can be on the basis of regional markets, customer categories, occasions, nature of services etc
Example of price discrimination includes:

1. A Public utility provided at different prices for residential and commerical users
2. Goods exported at below market prices (dumping) in other countries to exhaust the surplus supply.
3. Goods offered at a discount in the discount period.
4. Goods offered at a discount in rivalry to the competitor
5. Market skimming strategy and market penetration strategy in marketing new products.