Discriminating Monopoly or Price Discrimination.

In simple monopoly,the seller changes uniform price for all of output or changes same price to all customers.But if he changes different prices to different bovers at the same time for the same product,it is called price discrimination or discriminating monopoly.According to J.I.Pappas and E.F.Brighm - "In a general sense,price discrimination can be said exist whenever different classes customers are charged different prices for the same product."
In the world of A. Koutsoyiannis - "Price discrimination exists when same product is sold at different prices to different buyers."
Likewise, Mrs.Joan Robinson observe -"The art of selling the same article under a single control at different prices to different buyers is known as price discrimination."
The example of price discrimination can be found in service industries of lawyers,doctors,.They may charge different prices to the poor and rich on the basis of economic condition also can discriminate price.since a monopolist has sole control over the supply of a commodity,he can easily discriminate price.The different types of discounts provided to the customers is also a kind of price discrimination.

The price discrimination is made with following objectives :

1. Profit maximisation :The business enterprises discriminate price to maximise profit from the sale of their outputs.
2. Social justice :Price discrimination may be made to protect some classes of people such as women,children,old and poor.
3. Capture the market : Sometimes price discrimination is made to capture the market and to crush the rivals.