So is the idea that laws should allow price gouging only for certain reasons that they must be able to justify?
replyThat would get gamed immediately and we'd be in the same spot. Allow price differences for problem customers that require more attention and airlines will say that why they change prices basedcon certain factors.
The idea is that if you have a handful of customers and you offer bespoke service to each you can have custom pricing. If you offer standardized service to many customers, you can't.
reply> Notice also the thing the customers should be doing in response to the second one: Sharing the prices they're shown for everything with the other customers so they can arbitrage by having the person offered the lowest price be the one to order it.
replyAh, but this is worst in industries where resale is not possible. For example, flights, digital games, and rideshare. Of course one has the option to just not fly, buy games, or use Uber, but this limits a lot of convenience and function in a modern society. This is why I think targeted regulation is not such a bad thing - provided, as you explain, that the reason for the price discrimination is not because the customer actually costs the business more.
It's not practical to have customers coordinating purchases in that manner. What should happen is the customers report to a regulatory agency "this seller is engaging in illegal price discrimination" and that agency brings the hammer down.
reply