Price Discrimination

This topic examines the practice of price discrimination, where a monopolist charges different prices to different consumers for the same good based on their willingness to pay. It covers the three degrees of price discrimination: first-degree (perfect), second-degree (quantity discounts), and third-degree (market segmentation). The discussion includes the necessary conditions for price discrimination to be feasible and its effects on profits, consumer surplus, and economic efficiency. For Zambian tertiary students in economics and business programs, this topic is essential for understanding advanced pricing strategies, their welfare implications, and their prevalence in industries like airlines, utilities, and healthcare, providing valuable insights for exams and real-world market analysis.