[brandonkm]

Great explanation. The price discrimination of note here is third degree price discrimination. I think the most vivid example of this type that people here have seen is how Apple's product lineup is composed and the various pricing they offer to different types of customers.

Also, most startups that have incremental pricing on their products (eg: wufoo, heroku) do this as well.

http://en.wikipedia.org/wiki/Price_discrimination#Third_degr...