Question

In Shanghai, China, sellers of various fake watches have historically approached tourists as they exited tour buses, offering to sell the watches. The sellers then attempted to haggle with each of the tourists individually. What pricing strategy does this behavior resemble?

First degree price discrimination

Monopoly pricing

Third degree price discrimination

Second degree price discrimination

Answer 1

First degree price discrimination - is correct

Under first degree price discrimination each consumer is charged different price for each unit.