Editing Price discrimination (section)

== Comparisons ==
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===Advantages ===

* Sellers that hold some market power can increase their revenue.
* Lower prices (for some) than in a one-price market. Even the lowest "discounted" prices are higher than the price in a competitive market, which is equal to marginal cost. For example, trains tend to be near-monopolies (see [[natural monopoly]]). Seniors may get lower train fares than under uniform pricing, because the train operator knows that old people are more likely to be price-elastic buyers. Customers willing to spend time in researching ‘special offers’ get lower prices; their effort acts as an [[honest signal]] of their price-sensitivity, reducing their consumer surplus by the value of the time spent hunting.

===Critiques ===

* Higher prices. Under price discrimination, all consumers pay a higher price than in a competitive market. Some consumers also pay higher prices than in a single-price monopoly. 
* Decline in consumer surplus. Price discrimination enables a transfer of money from consumers to sellers.
* Fairness. For example, adults paying a higher price could be unemployed, while senior buyers could be well off.
* Administration costs. Distinguishing submarkets increase (fixed) costs, which could lead to higher prices.