2.7 Pricing strategies 2
- Consumer surplus: Is the difference between the price you are charged for a product and the maximum that you would have been willing to pay.
- Price discrimination: Is the act of charging different prices to different consumers for an identical good or service. (First-degree: Each customer is charged exactly what he is willing to pay. Second-degree: Consumers are charged according to the number of units they buy. Third-degree: Each consumer group is charged a different price).