Question

How would you design the scheme around direct and indirect price discrimination?

Answer 1

_{Direct Price Discrimination:}

_{In this case the pricing strategy charges different prices relative to cost according to buyer’s type for the same goods and services. It is designed to express the higher profit margins from buyers with higher willingness to pay.}

_{Indirect price Discrimination:}

_{It is a pricing strategy that charges different prices relative to cost as per the choice of the buyers for the similar goods and services. It is designed to express the higher profit margins from the buyer of higher willingness to pay.}