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As described in the Mini-Case “Google Uses Bidding for Ads to Price Discriminate,” Google uses auctions...

As described in the Mini-Case “Google Uses Bidding for Ads to Price Discriminate,” Google uses auctions to charge advertisers according to how much they are willing to pay to reach a target audience. What type of price discrimination is this?

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Generally google charges differently from the different advertisers based upon the auctions i.e. how much are they willing to pay or spend for their branding on Google. This is differential pricing that describes the practice of charging differently to the different customers for the same commodity or product. This is also called as Personalized pricing, in which each and every customer is charged differently on the basis of their capability or eagerness to pay. Therefore this sort of price discrimination is called as Perfect Price Discrimination.

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