price discrimination unit 3

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  • Created on: 17-01-13 15:01
Preview of price discrimination unit 3

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Price discrimination
Price maker
Different PEDs
Markets must be kept separate
First degree
Must know entire consumer surplus
E.g. ebay
Second degree
When a firm has a surplus capacity they target those who
would not buy
As long as price is more than MC they can still make a profit
E.g. football seats kid for a quid
Third degree
Distinguishing between markets
E.g. peak and off peak rail tickets


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