Pay Less or Pay More?

Why school tuition differs from one group to another? Price discrimination is known when sellers charge different prices to different customers for the exact same product or service. This happens frequently in our society where prices are allocated differently based on the customer’s location, age, occupation… For example, students and the elderly get certain discounts that the normal population doesn’t have. In this situation, many economists are faced with the moral dilemma that suggests whether price discrimination is beneficial to society or not. This practice can be examined using two…