First-degree price discrimination is where a business charges each customer the maximum they are willing to pay. This price can vary from customer to customer as the business charges the very maximum in order for the customer to purchase their goods.
Price Discrimination is a strategy businesses use to maximise revenue. Sellers charge customers different prices based on the maximum they think a customer is willing to pay.
Dynamic pricing is where the price of a good or service constantly fluctuates based on current demand. In other words, if there are many customers wanting to buy, prices increase to reflect this
Third degree price discrimination is where a firm charges the consumer a different price based on which consumer group they are in. For example, cinema’s charge different prices to adults, seniors, and youths – whilst taxi drivers often charge a higher rate during peak hours.
Second degree price discrimination is where a firm sells at different prices based on quantity. This may include offers such as buy two, get one free, or 20 percent off when you buy six.
