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Subscription services are a technology for carmakers to practice price discrimination.[1] Price discrimination reallocates consumer surplus to carmakers. It is
by nequo 4y ago
Subscription services are a technology for carmakers to practice price discrimination.[1] Price discrimination reallocates consumer surplus to carmakers. It is not good for you unless you're a carmaker.
Without subscription services, they only have the option of limiting heated seats to certain trims. If you want heated seats, you can buy one of those trims. But that trim probably comes with other features, too, that contribute to your surplus as a consumer.
With subscription services, they can force you to pay for everything feature-by-feature. This is worse for you, better for them.
[1] https://en.wikipedia.org/wiki/Price_discrimination https://en.wikipedia.org/wiki/Price_discrimination
- zeroonetwothree 4y agoThis is false. Price discrimination is good for consumers that opt out. In the absence of price discrimination the price ends up somewhere in between, which is worse for customers that would have paid less.
- deleted 4y ago[deleted]