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Price Discrimination

Charging different customers different prices for the same thing, based on what each is willing or able…
In plain English

Charging different customers different prices for the same thing, based on what each is willing or able to pay.

Price discrimination is when a seller charges different people different prices for the same product. Airline seats, student discounts, and app prices that vary by country are everyday examples. The seller is trying to capture as much of each buyer's willingness to pay as possible.

In trading, it shows up when dealers quote wider spreads to some clients than others, for example to customers they think are less informed, or to fast traders they fear will pick them off. Price transparency rules aim to limit the unfair kinds.

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