Third-degree price discrimination is legal and one of the most common forms of this strategy. It involves pricing goods and services based on the subset of a company's consumer base.

Third-degree price discrimination occurs when a company charges a different price to different groups of consumers. A theater might divide moviegoers into seniors, adults, and children.

Third-Degree Discrimination: Special Prices for Special Groups Third-degree pricing programs offer special discounts to members of certain groups, such as students, seniors or military personnel.

Third degree price discrimination relies on putting customers into groups and charging different rates based on willingness to pay within those groups, e.g. senior discounts at the movies.

According to economists, price discrimination comes in many forms. The mildest level (in terms of capturing consumer surplus) is “third-degree price discrimination,” by which retailers offer ...

There are three basic types of price discrimination, which economists (not so creatively) refer to as first-, second-, and third-degree price discrimination. First-degree or “perfect” price ...

Then there is third-degree or multi-market price discrimination, when sellers charge different prices for similar products to different groups of consumers. This is where things can start to seem ...