Degrees of price discrimination
First Level:
1) Company knows customers' WTP perfectly
2) Set prices on individual level
eg. Internet Sales. And we can estimate the customers' WTP via promotion program (customer's price sensitivity)
Second Level:
Indirect price discrimination
1) Firms offer different deals, eg. combination of different price quantity and quality
2) consumers self-select according to their own WTP and preference.
Type: Non-liner pricing, Versioning , bundling
Non-liner pricing ( quantity discount )
1) Customer's WTP for the first product is highest and decrease accordingly afterwards
eg. Fixed cost+ flexible cost
Versioning
Differentiating products in quality, quantity, convenience, etc.
eg. Business Class ticket might be canceled, rebook and so on
eg. damaged goods
Third Level:
Group Pricing
公司可通过观察消费者的特性，将其进行分组定价。
eg. work status (student discount) , location (water in airport), region , country, time (peak time)
Intertemporal Pricing
产品刚进入市场的时候，打最高价，随着时间的推移，渐渐降价（iphone )
