|
Double price discrimination
|
|
In business and economics, double price discrimination occurs when two or more price discriminating strategies are enforced upon the final consumer in order to extract consumer surplus and increase revenues for the seller. The application of two or more price discriminating strategies usually extracts more consumer surplus from the buyer, thereby generating more revenue for the seller. This is not to be confused with two-part tariffs. N-tuple price discrimination For transactions where N accounts of price discriminating strategies are present, N-tuple price discrimination is also used. Example: * Four accounts of price discriminating strategies → quadruple price discrimination Examples of double price discrimination * Purchasing toast in bundles at Costco, a membership retailer. (two-part tariff and tying) * Posting system in Major League Baseball (perfect price discrimination and two-part tariff) |
| < Prev | Next > |
|---|
Main Menu
| Home |
| Articles |
| Search |
| Submit Article |
| Contact Us |
| Donate to Wikibin |
