Definition of price discrimination in US English:
price discrimination
nounprīs dəˌskriməˈnāSHən
The action of selling the same product at different prices to different buyers, in order to maximize sales and profits.
Example sentencesExamples
- Information products that are less time-sensitive can exploit the time-based price discrimination approach to maximize profits over time as well as capture profit from both new and repeat customers.
- A traditional example of price discrimination is the practice of airlines to offer discounts to customers who ‘stay over’ at their destinations for a Saturday night.
- If a monopolist is going to exercise a crude form of price discrimination and set different prices for groups of consumers an obvious division might be between the Member States.
- Economic theory posits that price discrimination - where companies charge individuals based on their ability to pay and their value as a customer - is desirable since it makes trade more efficient.
- Contributions and purchases of tie-in products effectively allow price discrimination even if different purchase prices cannot be maintained.