Price discrimination can benefit firms from "summary" of The Economic Naturalist by Robert H. Frank
Price discrimination refers to the practice of charging different prices to different customers for the same product or service. This strategy can benefit firms in various ways. Firstly, price discrimination allows firms to capture a larger portion of the consumer surplus. Consumer surplus is the difference between what consumers are willing to pay for a product and what they actually pay. By charging different prices to different customers based on their willingness to pay, firms can extract more value from each customer. This results in higher profits for the firm. Secondly, price discrimination can help firms incre...
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