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Examples Of Price Discrimination In Healthcare

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Price discrimination is the seller practice of charging different consumers different prices for the exact same good or service when that exact same good or service costs the same to produce (Sexton, 2013). The practice of price discrimination exists when three conditions are met. Those three conditions are that there is market power, that the demand curves for the consumers are different, and that the consumer would have difficulty reselling the product or service for a profit.
The example that I am most familiar with is price discrimination in healthcare. This is a very common practice and one of the many reasons that you don’t see charges posted for equipment, supplies, and services like you would in a non-healthcare environment.
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