Price discrimination enables new products and services to exist
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A common sentiment that I encounter in the tech policy world is a visceral opposition to price discrimination. This is odd to me, because as an economist, I know that price discrimination often leads to more efficient outcomes. One particular element of this added efficiency is that when fixed costs are present, price discrimination allows products and services to be profitable that would not be profitable under standard pricing. This means that if we were to ban price discrimination, we would not get these products at all.
Price discrimination enables new products and services to exist
Price discrimination enables new products and…
Price discrimination enables new products and services to exist
A common sentiment that I encounter in the tech policy world is a visceral opposition to price discrimination. This is odd to me, because as an economist, I know that price discrimination often leads to more efficient outcomes. One particular element of this added efficiency is that when fixed costs are present, price discrimination allows products and services to be profitable that would not be profitable under standard pricing. This means that if we were to ban price discrimination, we would not get these products at all.