The typical use of price discrimination (or price segmentation) is when a seller of goods or services sells the same goods/services to entities that can afford to pay more at a higher price than to entities that can only afford to pay a lower price.

The objective is to maximize sales by getting more money from people who want to spend more money, while also getting some money from people who want to spend less money.

Offering people less money because you think they will accept less money because they are not likely to get a higher offer due to where they live is more accurately described as arbitrage.