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There are non-discriminatory situations where some customers are charged more than others. For example, parents of teenage drivers pay more for automobile insurance. This, however, is not price discrimination because teenage drivers are more likely to be in accidents and are more costly to insure.
Reservation Price = the maximum price that a consumer is willing to pay for a good. First Degree Price Discrimination = Charging each consumer her reservation price.
Examples of forms of price discrimination include coupons, age discounts, occupational discounts, retail incentives, gender based pricing, financial aid, and haggling.
Three different forms of price discrimination are discounted airline fares, manufacturers rebate offers, and senior citizen or student discounts.
One example of price discrimination can be seen in the airline industry. Consumers buying airline tickets several months in advance typically pay less than consumers purchasing at the last minute. When demand for a particular flight is high, airlines raise ticket prices in response.
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Examples of Price discrimination Time of Purchase. This petrol station is offering cut-price fuel for two days a week. Airline travel and time of departure. Quantity Purchased. Coupons. Age Discounts. Means-tested student fees. Resident parking charges. Dutch auction for Car registration plates.
Examples of price discrimination abound. Senior citizens and students are often offered discount fares on city buses. Children receive discount prices for movie theater tickets and entrance fees at zoos and theme parks.

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