Let me clarify my point. Our economy is based on the notion that things are worth what people are willing to pay for them. What if some people are willing to pay more than others? Then businesses have to choose: either they practice price discrimination, i.e. try to sell each and every unit for exactly what that person was willing to pay, or they set one price that will attempt to maximize their profit.
You can find many examples of each. Anyone who auctions off their goods practices price discrimination. i.e. 3 identical baseball cards auctioned separately on Ebay fetch 3 separate prices. Same thing with a seller in a street market who gives different prices to different buyers (tourists vs. locals) and then haggles with each and every buyer.
My point is, people seem fine with this kind of price discrimination in a lot of settings, but not all settings. For some reason, there are certain settings and triggers that change their view from "hey this is how things are supposed to work, this thing is worth what I'm willing to pay" to "hey I'm getting ripped off!" Why is that? And what are the triggers?
Businesses put a lot of work into finding pricing discrimination "tricks", including discounts and premium upgrades, and that on the whole is a fascinating topic to me.
You can find many examples of each. Anyone who auctions off their goods practices price discrimination. i.e. 3 identical baseball cards auctioned separately on Ebay fetch 3 separate prices. Same thing with a seller in a street market who gives different prices to different buyers (tourists vs. locals) and then haggles with each and every buyer.
My point is, people seem fine with this kind of price discrimination in a lot of settings, but not all settings. For some reason, there are certain settings and triggers that change their view from "hey this is how things are supposed to work, this thing is worth what I'm willing to pay" to "hey I'm getting ripped off!" Why is that? And what are the triggers?
Businesses put a lot of work into finding pricing discrimination "tricks", including discounts and premium upgrades, and that on the whole is a fascinating topic to me.