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Third Degree Price Discrimination In The United States

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Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets. In today’s society we see price discrimination in many places and you don’t even realize that it is price discrimination. Price differentiation is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. It essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand. There are three different types of price discrimination. First Degree Price Discrimination involves charging consumers the maximum price that they are willing to pay. Second Degree Price Discrimination involves charging different prices depending upon the quantity consumed and lastly Third Degree Price Discrimination which involves charging different prices to different groups of people (EconomicsHelp, 2015).
Very recently an act of price discrimination against men erupted in the Soho district of New York. The pharmacy wanted to charge all men that …show more content…

Boxed.com has also stated that it would start lowering prices for female-orientated products that had higher costs than its male equivalent and lowering the sales taxes on certain items as well. This is now becoming more commonly known as the “pink tax”. This pink tax refers to the extra amount women are charged for certain products or services. Things like dry cleaning, personal care products and vehicle maintenance (Elliott, 2015). These types of promotions are causing an outrage among many man calling these types of promotions: sexist, bigoted, and deplorable. These same groups care claiming that this will hurt the business and others claim that it will help grow the business as awareness spreads on why it is being

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