Friday, 23 October 2009

Third Price Discrimination, Examples

Third Price Discrimination, Examples

Virgin Trains price discrimination

Price discrimination is where consumer groups are charged different prices for the same good or service. A good example of price discrimination is virgin trains.

Virgin have three different price ranges, peak, off peak and virgin value tickets.

Peak standard return - £46.10
Off peak standard return - £28.00
Virgin value train tickets, are sold to those trains who are believed to be empty, however these must be bought in advance.


This is mainly due to the fact that peak hour commuters will usually have to reach work by 9am. Therefore they have no choice on spending the extra amount of money, because should they not spend it, they will become late for work.

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