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The 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, i
by bryanlarsen 2y ago
The 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