Editing Price discrimination (section)

=== Coupons ===
The use of coupons in retail is an attempt to distinguish customers by their reserve price.  The assumption is that people who go through the trouble of collecting coupons have greater price sensitivity than those who do not.  Thus, making coupons available enables, for instance, breakfast cereal makers to charge higher prices to price-insensitive customers, while still making some profit off customers who are more price-sensitive.

Another example can also be seen in how to collect grocery store coupons before the existence of digital coupons. Grocery store coupons were usually available in the free newspapers or magazines placed at the entrance of the stores. As coupons have a negative relationship with time, customers with a high value of time will not find it worthwhile to spend 20 minutes in order to save $5 only. Meanwhile, customers with a low value of time will be satisfied by getting $5 less from their purchase as they tend to be more price-sensitive.<ref name=":62">{{cite news |last=Rampell |first=Catherine |date=3 December 2013 |title=The Wedding Fix Is In |url=https://www.nytimes.com/2013/12/08/magazine/the-wedding-fix-is-in.html |access-date=29 March 2017 |newspaper=The New York Times}}</ref> It is an instance of third-degree price discrimination.