Price discrimination - desperate for water!

A business can use price discrimination in a number of situations. Sometimes it can be useful after initial consumption - often buyers will get a discount off the second item to encourage repeat consumption. However, the following picture shows the opposite…..once there has been consumption the business is able to sell a related product for a much higher price

Source: failblog.org

I experienced the former type of price discrimination when I won a skyjump of Auckland’s Sky Tower. The standard price of the jump was about $125 but once I had jumped I was presented with a lifetime certificate which entitled me to a second jump for half price. Unfortunately for them, my marginal utility fell so sharply that I have not yet taken up the offer. But it is possible that given time, my marginal utility could creep up again. Where the certificate is though I have no idea…