Definition
- No resale
- No resale means buyers who pay the low price cannot sell the product on to those charged the high price, or the price gap would close.
Example
Can you think of an example of no resale?
An off-peak ticket is not valid on a peak train, so a commuter cannot buy the cheap ticket and use it at the busy time. A student cinema ticket is checked against a student card at the door.
Test yourself
Can you name the three conditions for price discrimination?