> It’s not a bad progressive model to have people who aren’t price-sensitive subsidize people who are. It is entirely bad. It arrogates consumer surplus to th

> It’s not a bad progressive model to have people who aren’t price-sensitive subsidize people who are. It is entirely bad. It arrogates consumer surplus to the supplier. The people paying higher prices don’t subsidise those paying lower prices, the supplier pockets most of the gains. They’d like you to believe that the people paying cheaper prices are subsidised, but they’re not selling to them at a loss. And it causes a deadweight efficiency loss. The fact that businesses can pass this off as some kind of progressive pricing and good for the consumer makes it as disingenuous as it is pernicious. https://en.wikipedia.org/wiki/Economic_surplus https://en.wikipedia.org/wiki/Economic_surplus https://en.wikipedia.org/wiki/Price_discrimination https://en.wikipedia.org/wiki/Price_discrimination https://en.wikipedia.org/wiki/Deadweight_loss https://en.wikipedia.org/wiki/Deadweight_loss