Price discrimination that involves charging different prices to different groups of customers for the same good or service, which is not associated with costs. There are three types of price discrimination. First-degree price discrimination occurs when different prices are charged to different individuals based on their willingness and ability to purchase, in order to capture maximum consumer surplus. Second-degree price discrimination occurs when the price differs when different consumers purchase in different quantities. Third-degree price discrimination occurs when prices are charged differently due to the elasticity of consumer demand. More inelastic demand will face a higher price in third degree price discrimination. There are three main conditions for price discrimination. The first is the different price elasticity of demand. Different consumer groups should have different elasticity of demand. Firms will be able to charge a higher price to a more inelastic demand group and a lower price to a more elastic group. By implying this method, businesses can increase their profits, which increases producer surplus and reduces consumer surplus. To maximize profit, firms will set the price at the point where marginal cost equals marginal revenue (MR=MC). The second condition is that companies must divide the market into distinct sections and keep them unique and prevent consumers who bought the products at a lower price and may tend to resell them at a higher price to others. Segmentation means that consumers in one market cannot resell the good to others in another market. Price discrimination will not be effective if intergroup trade is possible. Those who pay a higher price cannot purchase from those who pay the ...... half the card ...... a given flight at the time they book it. However, British Airways initially sells at a high price, with price discrimination in different classes. Prices will then be significantly reduced for seats sold when the timetable is closed at departure time. British Airways always tries to fill all the seats in the final. During this competition between budgets and within airlines, consumers can benefit from a competitive market as lower prices and even more choices to determine. In conclusion, whether companies should price discriminate depends mainly on the type of company. I agree that companies could do more price discrimination, especially transportation companies. As a result, they could make better use of the distribution of resources and lead to a more socially efficient environment, which would increase the social well-being of the entire society..