Why Do Some People Pay More for the Same Product?

Imagine you and your friend go to an ice cream shop. You both buy a cone for $3, but your friend gets a special deal and only pays $2. That’s price discrimination, the shop gives some people a better deal than others, even though they’re buying the same thing.

Why does this happen? Sometimes stores know that some people are willing to pay more than others. If you really want that ice cream right now, you might be okay paying $3, but your friend might not mind waiting and getting it for less.