Question

Firms usually faces obstacles to implementing price discrimination.
Describe and explain the main obstacles faced by firms, as discussed in the
class. How do these obstacles affect the strategies of price discrimination that firms can use?

Answer 1

we know that

the obstacles to implement price discrimination are the conditions necessary for price discrimination practices are market should be segmented and separate and the rice elasticity of demand should vary across consumers, the perfect information about the price elasticity of consumers is impossible and markets are never entirely separated

these obstacles hamper firm's price discrimination strategies hence monopolist firms use discounts and schemes to identity consumer willingness to pay and extract their surpluses