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Price discrimination often allows producers to capture more of the surplus for complicated reasons that mostly boil down to the fact that they are the party wit
by ianferrel 4y ago
Price discrimination often allows producers to capture more of the surplus for complicated reasons that mostly boil down to the fact that they are the party with more information.
A limit on complicated pricing models likely results in some deadweight loss, but may result in higher aggregate consumer surplus.
Choice isn't everything.
- zeroonetwothree 4y agoPrice discrimination works fine without subscriptions. They can charge $1000 for heated seats one time rather than monthly. This is entirely orthogonal.
- ianferrel 4y agoUh... If you have more pricing options, you get more price discrimination. It's not entirely orthogonal.