So first of all we need to understand the benefits of price discrimination and why companies can and should use it as a strategic tool. So, why would we want to price discriminate? Why charge different people different prices for basically the same good? Well, let me give you a very simple example that I think is going to illustrate why we do this. So, let's imagine you subscribe for a magazine, and we've got two different groups of consumers. We've got students, which have a reservation price of 300 Euros, or dollars, or whichever currency. We have non students, which have a reservation price of 470. So they're slightly more rich, they're slightly more affluent, and they can spend more money on that. Now, if we couldn't charge different prices for different people, then we have two choices. We can try the price of 300 Euros, which is going to give us, purchases by both students and non students, and it's going to give us revenues of 600 Euros. If we charge the price of 470 Euros, it's going to mean that only the non students buy and overall we make a revenue of 470 Euros. So we're basically looking at a trade-off. Either we charge a high price and we lose some customers, or we charge a low price and we lose some willingness to pay from the high value customers. Now what can we do if we price discriminate? If we price discriminate, we could charge students a price of 300 Euros, and we could charge non students a price of 470 Euros. This is going to mean that we sell to the non students for their willingness to pay, and we sell to the students for their willingness to pay. So overall, both are going to buy. And our overall utility or overall revenues are going to be 770 Euros. So, that's basically the rational for price discrimination, for charging different people different prices for basically the same good of for similar goods. Stay tuned, there's more to come. Okay great. So, price discrimination is something that helps us to efficiently skim off our consumer's willingness to pay. Let's find out how this is in line with product differentiation. [BLANK]