Price discrimination

Price discrimination - is the establishment of different prices for the same product, provided that the price differences are not associated with different costs. It can be: 1) the first kind (perfect CD) - the practice of charging fees to each customer equal to its subjective value, that is the maximum price that a buyer is willing to pay. 2) The second kind - the price change, depending on consumption. Applies in the case where the manufacturer is no information about each customer, but there is information about groups of consumers. In this case the seller sets the number of tariffs, and the buyer chooses the appropriate rate him. In setting rates for seller is to take the maximum of the consumer surplus. 3) The third kind - is selling the same product to different categories of consumers at different prices. For example, discounts for pensioners and students.