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2022•Sumerianz Journal of Social ScienceOpen access

A Simplified Theoretical Understanding of Price Discrimination as a Business Management Strategy

Ejiro U. Osiobe

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Abstract

The paper delves into the five different types of price discrimination while giving graphical and illustrative examples of Pigou (1920) price classifications, marketing strategies, and more. The paper shows the differences and similarities between all price discriminations during transactions from first degree, second degree, third degree, fourth degree, and fifth-degree pricing [discrimination] strategies while graphically showing the ratio to marginal cost.

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What this paper is about

The paper delves into the five different types of price discrimination while giving graphical and illustrative examples of Pigou (1920) price classifications, marketing strategies, and more. The paper shows the differences and similarities between all price discriminations during transactions from first degree, second degree, third degree, fourth degree, and fifth-degree pricing [discrimination] strategies while graphically showing the ratio to marginal cost.

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Available abstract

The paper delves into the five different types of price discrimination while giving graphical and illustrative examples of Pigou (1920) price classifications, marketing strategies, and more. The paper shows the differences and similarities between all price discriminations during transactions from first degree, second degree, third degree, fourth degree, and fifth-degree pricing [discrimination] strategies while graphically showing the ratio to marginal cost.

Key concepts: Degree (music), Price discrimination, Pigou effect, Economics, Marginal cost, Microeconomics, Econometrics, Mathematical economics

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