First degree price discrimination – an example of this is a Dutch auction, where the price begins high and decreases until there is a buyer. The price paid is likely to be very close to the price the consumer is willing to pay.
Second degree price discrimination – some examples are travel companies that offer cheaper holidays closer to the departure date. Another example is end of season sales in order to clear surplus stock.
Third degree price discrimination – some examples are happy hour in pubs and student discounts in cinemas, restaurants and for rail travel.
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