I have a minor quibble with the term 'subsidizing', since it is still being sold at a profit. It's just a lower margin, because the point of maximal profit in t

I have a minor quibble with the term 'subsidizing', since it is still being sold at a profit. It's just a lower margin, because the point of maximal profit in the lower end of a segmented market is necessarily lower than the point of maximal profit in a non-segmented market. It's not going to go into negative profit (and thus enable the customer to buy it "at a loss" for the business, whereby the business is effectively paying part of the cost of the thing on behalf of the customer) as a result of segmentation. So it's neither costing the business profit, nor is it offering the good at a per unit loss. It -is- offering the good at a lower margin than would make sense in an unsegmented market.