Economics Oligopoly Questions
Price discrimination in oligopoly refers to the practice of charging different prices to different customers or market segments for the same product or service. Oligopolistic firms engage in price discrimination to maximize their profits by taking advantage of differences in customers' willingness to pay. This strategy allows firms to capture a larger share of the market and increase their overall revenue. Price discrimination can be achieved through various methods such as offering discounts, loyalty programs, or different pricing tiers based on factors like location, age, or income level.