Similar to the perfect one, second-degree price discrimination charges different price for different quantity. Unlike the perfect one, this time the discount is massive, and the quantity difference even so. An obvious explanation is that the customer is a wholesaler, who has a larger demand...

The third-degree price discrimination theory charges a lower price to a more elastic demand. This paper unveils an unpleasant result of such theory: the lower price comes with less quantity. This paper further reveals the true meaning of elasticity pricing

Perfect, or the first-degree, price discrimination is a practice to charge a customer different price on every unit of the same product. So the first unit carries the highest price, the second lower, etc. Varian (1993, p.421) used an example, “a small-town doctor who charges his patients...