What is the definition of price discrimination in economics?

Price discrimination in economics refers to the practice of selling the same product or service at different prices to different customers. This can happen for various reasons, such as differences in demand, customer willingness to pay, or market segments. For example, a movie theater might charge lower prices for students or seniors compared to regular adult tickets, allowing them to attract more customers who might not otherwise afford the full price. The goal of price discrimination is to maximize profits by capturing more consumer surplus, which is the difference between what consumers are willing to pay and what they actually pay. Overall, it helps businesses increase sales while offering options that cater to different groups of people.