Price Discrimination The Only Type Of Good Discrimination

Price Discrimination - The Only Type of Good Discrimination Price discrimination is common term used throughout the economics realm. In a perfect economic world, one price would fit all, however, we are not nor will we ever be in a perfect economical balance. Price discrimination takes on many different titles but can be defined by one simple statement of selling the same product to separate individuals for a different price (Elegido 633). Many consumers may identify this as being an unlawful act of discrimination, however, in the economical sense it is a lawful way of increasing its economical outcome. By utilizing price discrimination, firms are able to identify groups of individuals who are willing to pay more for a product and be able to charge less for other groups to attract a more profitable outcome while also increasing its client base (Edwards 298). Often, firms shy away from this type of tactic due to the negative perceptions it may give them, yet find other ways within the market to offer disco unts under a different title only to camouflage the discrimination with a fancier term (Elegido 634). Whether a firm chooses to utilize price discrimination or not or whether one feels it is a legal way to charge more for a product, it has been proven to be a useful tool in both maximizing profits and attracting a client base both legally and ethically. The ability to price discriminate has riled many companies to challenge the ethics of rival companies. ElegidoShow MoreRelatedprice discrimination versus price differentiation1359 Words   |  6 PagesPrice Differentiation vs. Price Discrimination Price differentiation and price discrimination: two terms used in Marketing and Economy. First of all, it is appropriate to make an accurate definition for both of the terms. 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