Price discrimination is a way of charging some people more money than others for more-or-less the same good.  For some goods or services, some people are willing to pay more than others.  Charging everyone a high price means that you’ll lose sales.  Charging everyone a lower price means you’ll miss out on some of the income that would be generated by people who are willing to pay more.  Typically, a firm will determine a price that it thinks will be high enough to catch those who are prepared to pay a high price, but not so high as to dissuade too many of those who aren’t.  The alternative is to vary the price based on willingness to pay.  This is price discrimination, and today I’m going to use the Apple iPad as an example.
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