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I'm skeptical that the total amount charged would be the same if it were mandatory. I mean, consider backup cameras on cars. Do they cost the same after being r
by perl4ever 7y ago
I'm skeptical that the total amount charged would be the same if it were mandatory. I mean, consider backup cameras on cars. Do they cost the same after being required as when they were luxury options?
That is, doesn't price discrimination generally allow companies to extract more money overall? And in this case it's contrary to public welfare.
- beerandt 7y agoMaybe not exactly the same, but more. We're not talking about reducing the marginal price on new technology that needed capital investment- we're artificially reducing overall capacity. Airfare already had seating efficiency priced in. For the math to work, best case, you'd need to reduce capacity of a 737 (3+3 across) by 1/3 (no middle seats). 1/2 for sets of 2 or 4 seats.