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Discussion Starter · #1 ·
(price discrimination is what economists call things like pay per view on everything)


"The price discrimination debate adds some nice twists to the story. Two ironies are glaringly apparent. First, I argued that the move to price discrimination is a move that, in our world at least, is partly premised on the creation of unnecessary monopolies. To put it another way, there is something truly perverse about the idea that once the legislature has created an unnecessary and counterproductive intellectual property right over databases, they then have to turn around and give a second heaping slice of monopoly rent to the content-providers, because the only two types of efficient markets are perfect competition and monopoly with perfect price discrimination. The popular definition of chutzpah is the child who kills his parents and then throws himself upon the mercy of the court because he is an orphan. The economic definition of chutzpah is the industry that demands a legalized monopoly, and then, once given it even though the evidence was weak, insists on the state’s aid in price discrimination, the better to wring every last cent of consumer surplus out of their customers."

http://www.vanderbilt.edu/Law/lawrev...l536/boyle.pdf
 

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Price discrimination is not really ppv on everything, see

http://www.ftc.gov/bc/compguide/discrim.htm


It is simply charging different customers different amounts for the same thing.


Price discrimiation allows a clever seller to extract all the area under the demand curve, which is why it is nasty with monopolies.


John
 
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