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Price Discrimination

Price discrimination is a corporate strategy whereby a seller offers the same product to customers at different prices. This practice allows sellers to appeal to a wide range of customers and capitalize on opportunities to maximize profits. The word discrimination often has a negative connotation. However, in terms of finance, the term discrimination merely denotes how sellers can sway market price to meet the demand of buyers. In the U.S. education context, price discrimination generally is discussed and debated as it applies to the postsecondary level. In higher education, price discrimination denotes a scenario in which academies charge unlike tuition prices to students for the same quality of education. This practice can be done at both university and departmental levels. For price discrimination to occur, ...

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