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> I’m curious, what are the arguments against making price discrimination illegal? Markets work better the more customer knows about a product and the company
by scotty79 2y ago
> I’m curious, what are the arguments against making price discrimination illegal?
Markets work better the more customer knows about a product and the company that provides it.
Markets work worse when the company knows more about the customer and the product than the customer that buys it.
It's basically extension of market for lemons.
- memen 2y agoWhat do you mean by 'better' and 'worse'? In other words, what is your definition of a good market?
- scotty79 2y agoThe market is better when sum of the economic gain of all actors is greater.
- Spooky23 2y agoWith something like airlines that isn’t always obvious. Is a sustainable airline industry the greatest value? Or is it better to have a boom-bust market where passengers have greater access to travel? It’s not an easy question.
- oytis 2y agoThese look like arguments for making price discrimination illegal? I think alternative to making it illegal could be demanding full disclosure to eliminate information disparity. If a company does it, it should make it clear that it does it, and disclose the price range and criteria to determine your price (the latter can be obfuscated by AI-washing though). It looks like in the EU the requirement to disclose the fact of using personalised pricing alone (without further detail) discourages most of retailers from using it.
- scotty79 2y agoIf you can discriminate on price and gain you know about your customer too much.