Price discrimination
Price discrimination charges different prices for a similar underlying product or service to distinguishable customer groups or circumstances, not solely because of corresponding cost differences. It can reflect willingness to pay and market segmentation, but requires practical separation and must comply with applicable legal and ethical constraints. Evaluate arbitrage, customer response and brand effects. This conceptual entry does not establish any jurisdiction’s current legal permissions.
Worked example
A service offers different verified customer-category prices where customers cannot readily resell the benefit, and assesses whether the arrangement is lawful and commercially sensible.
Common mistake
A price difference caused by a genuine difference in product or delivery cost is not automatically the same economic concept.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | PM | Direct | September 2026–June 2027 |