The modern theory of price discrimination began with the work of Arthur Cecil Pigou (1877-1959) and is defined by Machlup (1955): “The Price discrimination can be defined as the practice of a firm or group of firms that sells (rents) at prices disproportionate to the marginal costs of the products sold (rented) or that buys (rents) at prices disproportionate to the marginal productivities purchased (rented) factors". But in simpler terms, "price discrimination is often defined as charging different customers different prices for the same or very similar offering" (Smith, 2004). The motive behind this is to increase profits by reducing consumer surplus If the same price is charged to all consumers, some of the potential revenue is lost since some consumers would be willing to pay more But before answering the question of. to know whether or not companies should practice price discrimination, we will need to distinguish between the different types of price discrimination and before that, it is important to note that there are three conditions necessary for a company to practice price discrimination, namely: the company must be a price maker, the elasticity of demand must be different in different markets and finally, the market must be clearly separated. To begin, we must determine to what extent the monopolist can appropriate consumer surplus, which is the “additional satisfaction” or utility obtained by consumers by paying a real price for a lower good than they would have otherwise. been willing to pay” (Davies, Lowes and Pass, 2000), is called degree of price discrimination and there are three degrees of price discrimination: first, second and third degree price discrimination. "First-degree price discrimination occurs when the domestic market for paper is sold in the middle of the paper. Now, after explaining the different types of price discrimination, we can address the question of whether companies should discriminate or not prices This can be done by analyzing the advantages and disadvantages of price discrimination on businesses as well as on consumers and society. should engage in price discrimination in order to increase their income and hence profits because price discrimination allows them to capture consumer surplus Moreover, first price discrimination (perfect discrimination). by prices) brings economic efficiency since it eliminates the deadweight loss which is “the reduction in consumer surplus and producer surplus which results from the production of a product. is limited to a level below the optimal level of efficiency which would prevail under perfect competition” (Davies, Lowes and Pass, 2000).