Personalized pricing

Definition
Personalized pricing (also called first-degree price discrimination) "occurs when a seller charges a different price to every buyer."

Overview
Individually negotiated prices, such as those charged by a car dealer, are an example of personalized pricing. Quantity discounts, or second-degree price discrimination, occur when the per-unit price falls with the amount purchased, as with popcorn at the movie theater. Finally, third-degree price discrimination occurs when sellers charge different prices to different demographic groups, as with discounts for senior citizens.