Verðmismunandi

Verðmismunandi, often translated as price discrimination, is a pricing strategy where a seller charges different prices for the same or similar product or service to different buyers. This strategy is only possible when the seller has some degree of market power and can prevent arbitrage, meaning buyers who purchase at a lower price from reselling to those who would have paid a higher price.

There are generally three main types of price discrimination. First-degree price discrimination, also known as perfect price discrimination, involves charging each customer the maximum price they are willing to pay. This is rarely achievable in practice. Second-degree price discrimination occurs when prices vary based on the quantity consumed, such as bulk discounts. Third-degree price discrimination involves dividing customers into groups and charging different prices to each group, based on characteristics like age, location, or student status.

Examples of third-degree price discrimination are common. Airlines often charge different prices for the same seat depending on when it is booked or the passenger's flexibility. Movie theaters may offer discounted tickets for students or seniors. Software companies sometimes offer different versions of their products at different price points, catering to different market segments. While price discrimination can increase a seller's profits, it can also lead to concerns about fairness and equity among consumers. Regulatory bodies may intervene if price discrimination is deemed to be anticompetitive or exploitative.