On: Corporations Learned the Maximum Amount They Can C...

[amadeuspagel]

Price discrimination ensures that poorer people get stuff cheaper. Price discrimination is why poor people can afford flying today.

[bryanlarsen → amadeuspagel]

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.

[HDThoreaun → bryanlarsen]

Without 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

[amadeuspagel → bryanlarsen]

Price discrimimation is only possible with market power, in cases where the single price would not be the marginal cost.

[bryanlarsen → amadeuspagel]

First class is still a thing even on highly competed flights that are well covered by multiple carriers.

[oytis → amadeuspagel]

Surely it's price discrimination and not the boom of low-cost carriers?

[amadeuspagel → oytis]

Price discrimination is how low-cost carriers make money.