Price discrimination

Price discrimination takes place when a firm sells identical or similar goods or services at different prices, such differences in price not motivated by different costs. From an economic perspective, price discrimination requires some degree of market power, arbitrage control, differing price sensitivities across buyers or units and an ability to link these sensitivities to the appropriate buyers. From a legal perspective, price discrimination is targeted by various legal provisions including Articles 101–102 TFEU in the European Union and §§1–2 of the Sherman Act in the United States. As a wide variety of practices involve price discrimination, enforcement standards differ depending on the exact nature of the conduct.