Price Discrimination by Non‐uniform Pricing

Abstract

Two‐part pricing and block pricing are two extensively used techniques for price discrimination which seem to have received little attention in the marketing literature. Also, it does not seem to be generally appreciated that quantity discounts can be employed as a vehicle for price discrimination. This paper describes these techniques and discusses from a managerial perspective why they can be profitable and how they might be implemented. A comparison of the advantages and disadvantages of these techniques versus conventional methods of price discrimination based on a priori segmentation of the market is also presented.

Citation

Batchford, B.T. (1978), "Price Discrimination by Non‐uniform Pricing", Management Research News, Vol. 1 No. 1, pp. 7-7. https://doi.org/10.1108/eb027675