Answer to Question #98767 in Macroeconomics for Kritika

Question

Which among the three degrees of price discrimination,seems to be the most unrealistic to you?why?

Answer 1

In my opinion, the most unrealistic type of price distcrimination is the first-degree one. This type of pricing strategy takes place when businesses can accurately determine what each customer is willing to pay for a specific product or service and selling that good or service for that exact price. At first, it doesn't reflect all expectations of customer, because it's almost impossible to research every customer. Also, it is time-consuming and expensive, therefore all expenditures, spent on consumer research, may not pay off.