What are the three degrees of price discrimination?

The three degrees of price discrimination are:

1. First-degree price discrimination (or personalized pricing) occurs when a seller charges each consumer the maximum price they are willing to pay, capturing all consumer surplus.
2. Second-degree price discrimination involves charging different prices based on the quantity consumed or the product version, such as bulk discounts or premium pricing for higher-quality options.
3. Third-degree price discrimination occurs when prices vary based on identifiable characteristics of different consumer groups, such as age, location, or time of purchase, like student or senior discounts.