Question

Are there opportunities to use price discrimination?

Answer 1

Price discrimination is basically adopted by companies that have a certain degree of market power and ability to segment the market according to the elasticity. Ability to segment the market according to the elasticity. One of the most important condition for price discrimination is the prevention of resale. If these three conditions are met then companies can price discriminate in any market of their choice. In the present scenario price discrimination is widely used practice by various companies that are able to fulfill these three conditions. Software companies are one of the prime examples.