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A price index plural : "price indices" or "price indexes" is a normalized average typically a weighted average of price relatives for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to help to compare how these price relatives, taken as a whole, differ between time periods or geographical locations. Price indices have several potential uses. For particularly broad indices, the index can be said to measure the economy's general price level or a cost of living. More narrow price indices can help producers with business plans and pricing. Sometimes, they can be useful in helping to guide investment.
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Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets. For price discrimination to succeed, a firm must have market power, such as a dominant market share, product uniqueness, sole pricing power, etc. However, some prices under price discrimination may be lower than the price charged by a single-price monopolist. The term differential pricing is also used to describe the practice of charging different prices to different buyers for the same quality and quantity of a product, [6] but it can also refer to a combination of price differentiation and product differentiation.
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