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

[bryanlarsen]

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.