Differential Price and Price Discrimination


Differential Pricing and Price Discrimination have a lot in common – so much so that they are sometimes used interchangeably – but there are important differences worth noting.

Differential pricing can include product differentiation (different versions of the same product) and this allows for a wider variety of products and related pricing options.

Price discrimination on the other hand refers to the practice of charging different prices for the exact same, or at least very similar, product.

Some new content on the Beyond Cost Plus aims to better explain the two concepts, and the differences between them, using definitions, examples and real world case studies everyone should be able to relate to.


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