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I don’t think it’s actually true that people are “paying the same price for a worse product”. This is an area where one has to be extremely careful because it’s
by eapressoandcats 2y ago
I don’t think it’s actually true that people are “paying the same price for a worse product”. This is an area where one has to be extremely careful because it’s not the case that all the input costs are held steady so you’d see a decrease in actual fare when switching to price discrimination. One possibility is that input costs have gone up but the lowest price stays the same with worse amenities.