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Price discrimination ensures that poorer people get stuff cheaper. Price discrimination is why poor people can afford flying today.
by amadeuspagel 2y ago
Price discrimination ensures that poorer people get stuff cheaper. Price discrimination is why poor people can afford flying today.
- oytis 2y agoSurely it's price discrimination and not the boom of low-cost carriers?
- amadeuspagel 2y agoPrice discrimination is how low-cost carriers make money.
- bryanlarsen 2y agoThe price floor is set by the marginal cost even with price discrimination. That's the same price floor as in a single price system. The poor gain little, if any, from price discrimination.
- amadeuspagel 2y agoPrice discrimimation is only possible with market power, in cases where the single price would not be the marginal cost.
- bryanlarsen 2y agoFirst class is still a thing even on highly competed flights that are well covered by multiple carriers.
- HDThoreaun 2y agoWithout price discrimination airlines would raise prices and not fill their planes. Price discrimination allows them to extract as much as they can which maximizes the number of people who can fly