I guess the standard discounting approach means that people who care a lot about low prices can get even lower prices, because to they are to an extent cross-su

I guess the standard discounting approach means that people who care a lot about low prices can get even lower prices, because to they are to an extent cross-subsidised by people that don't care. In the always-low-prices model, no cross-subsidy is available, so you lose a lot of the people who care about low prices, and you don't gain many of the people who don't care because, well, they don't care.