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Sir,
I recently read a OTQ whereby it was mentioned that “For a price Discrimination strategy to be effective the goods mustn’t be able to move freely between market segments”Sir can you please explain me this I just can’t get my head around it.
Price discrimination is where you sell the same product in different markets at different prices.
Two examples of what the statement means:
1. Suppose people in country A are richer than people in country B and so in order to sell as many as we can we charge a higher price in country A and a lower price in country B. That only works if people in country A can not order the goods from country B (if they can then obviously they will all buy from country B at the lower price).
2. For some things such as tickets on public transport, students are charged less than older people for the same thing. Again, that only works if you have to prove you are a student otherwise everyone would claim to be on and pay a lower price.
I do give examples like this in my lectures!! Are you not watching the free lectures?
No sir, I did watched the lecture and I do remember tickets example..But I was a bit confused
Regardless now it’s clear.. Thanks for the explanation..
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