Price discrimination is only ok if it increases consumer surplus and you have a choice of providers. Comcast fails on the former and more often than not on the latter.
I just don't see the difference. Not having a choice in providers is clearly a problem regardless of how that provider structures their fees. Allowing them to charge certain people more and less is not inherently worse.
Price discrimination is ok, if it in addition to providing a premium product also makes the good or product more affordable and available to another class of customers, thus creating a consumer surplus. Classic example: air travel.
Comcast's offering is a sham. It makes broadband more expensive for everyone. This is inherently worse.
eli|11 years ago
al_bundling|11 years ago
Price discrimination is ok, if it in addition to providing a premium product also makes the good or product more affordable and available to another class of customers, thus creating a consumer surplus. Classic example: air travel.
Comcast's offering is a sham. It makes broadband more expensive for everyone. This is inherently worse.