Third degree price discrimination is defined as the price
charged will have little or no relationship with the cost of
production.
Explanation -
- When the price of product and services of the companies is
based differently on unique demographic of base of customers like
senior junior, parents , students etc
- Third degree price discrimination will help to reduce the
consumers suprlus by changing the price elasticity of demand of
some of the customers subsets
- Third degree price discrimination is usually seen in offers of
restaurant or movie ticket sales etc
- The linkage of price discrimination in this is directed with
willingness of consumers and their ability to pay for that
particular goods or services