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Isn’t price discrimination embedded in nearly every transaction we engage in, though? What is the difference between price discrimination between classes of in
by mcrae 7y ago
Isn’t price discrimination embedded in nearly every transaction we engage in, though?
What is the difference between price discrimination between classes of individuals (to your point, business vs leisure travellers), and individuals themselves?
Nearly every pricing guide on this site recommends offering an ‘invoiced’ pricing plan for enterprises for substantially more than the same service on credit card billing. Price discrimination at its finest and, I would argue, a good thing for suppliers to extra more of the benefit they are providing to consumers.
If the price of the Uber ride is higher than you value that ride... just don’t buy it. Otherwise enjoy the value you have extracted from Uber
- suyash 7y agoNo, go to amazon.com and look for your favorite product, now tell me if 10 people from different income level see that, will the price be diffferent?
- cambalache 7y agoProbably a very high percentage of items(90% I am pulling things out my ass) are NOT price discriminated. Food, electronics, many many transportation fares (buses, subways), you get the money you pay the same regardless of your net value or income. People love to be contrarian, that's all.
- cma 7y agoWasn't that the whole idea of publishers attempting to ban book imports? Amazon or their suppliers do price discrimination regionally on many products I'm sure.
- wutbrodo 7y ago> If the price of the Uber ride is higher than you value that ride... just don’t buy it. Otherwise enjoy the value you have extracted from Uber The surplus from a trade is divided between the buyer and the seller, and each party's surplus ranges from epsilon to 1-epsilon. Your claim that a move towards universally giving one party ~0% surplus and the other ~100% doesn't matter is self-consistent, but it shouldn't be surprising that society would concern itself with how surplus is divided (eg antitrust laws or any other competition-regulating policy)
- chrismcb 7y agoIt typically is not the same service. The enterprise plan typically comes with better or faster customer support, or more resources, or something.it may not always reflect the entire value of the value add. But it is rarely the same service.