<p><b>Price discrimination</b> is when a firm charges different prices for a homogeneous product to different consumers. </p>

<p>In this example we see no such discrimination among consumers. This is just a case where there is competition between two firms.</p>

CC BY-SA 3.0
2016-09-02T02:46:36.180Z
2016-09-02T02:46:36.180Z
EconJohn
<p>Price discrimination is typically when the business targets different kinds of consumers with different prices. Think different prices for old vs young people. Amazon charging less could stem from them being more efficient, or they are losing money on it to drive out competition or bring people to the site to buy other things. </p>

CC BY-SA 3.0
2016-09-01T17:25:49.953Z
2016-09-01T17:25:49.953Z
VCG
<p>Can anyone explain why this isn't an example of price discrimination:</p>

<p>The same golf club selling for $100 at Sports Authority and 80 on Amazon.<br>
I believe that consumer's demand elasticity to price at Amazon would be higher than the consumer at certain Sports Authority. May be the idea of an Sports Authority which I've is wrong?</p>

<p>I came across this in a quiz in the Standford online course for Economics.</p>

CC BY-SA 3.0
2016-09-01T19:27:08.983Z
You do not know whether the price difference is the golf club or the market place.  In any case, the quiz probably thinks that since anybody can go to either site, it does not count as price discrimination
Henry
<price-discrimination>
Example of Price discrimination
Ishan Sharma
# Example of Price discrimination

(Asked by: username_0 on 2016-09-01)

Can anyone explain why this isn't an example of price discrimination:

The same golf club selling for $100 at Sports Authority and 80 on Amazon.  
I believe that consumer's demand elasticity to price at Amazon would be higher than the consumer at certain Sports Authority. May be the idea of an Sports Authority which I've is wrong?

I came across this in a quiz in the Standford online course for Economics.

**Tags:** price-discrimination
> **Comments:**
> **username_1**: You do not know whether the price difference is the golf club or the market place.  In any case, the quiz probably thinks that since anybody can go to either site, it does not count as price discrimination  

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## 2 answers

### Answer by username_2 on 2016-09-02. Score: 1

**Price discrimination** is when a firm charges different prices for a homogeneous product to different consumers.

In this example we see no such discrimination among consumers. This is just a case where there is competition between two firms.


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### Answer by username_3 on 2016-09-01. Score: 0

Price discrimination is typically when the business targets different kinds of consumers with different prices. Think different prices for old vs young people. Amazon charging less could stem from them being more efficient, or they are losing money on it to drive out competition or bring people to the site to buy other things.


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