Third-degree price discrimination

Updated: Aug 20, 2021

Price discrimination where sellers can identify different types of customer, and offer each type a different contract. Special prices may be offered, for example, to students or pensioners. This type of discrimination is possible only when the resale of goods or services is costly or impossible; if resale were costless, every customer would buy through the type that offered the lowest price. See also first-degree price discrimination; second-degree price discrimination.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.