[badamp]

What does this have to do with anything? Product differentiation is not price discrimination.

If they were selling the same exact product with same features at different prices, then maybe. But this is not the case.

This is just you being unhappy with the market clearing price for those features.

[lotsofpulp]

It is a form of price discrimination called tiered pricing:

https://www.priceintelligently.com/tiered-pricing

For a mass market good it’s not tactful to openly ask each customer how much they’re willing to pay and sell at that maximum price, so another way to get closer to achieving that is to differentiate products with features that have very low marginal costs.

Psychologically, it’s also part of “anchoring” where you establish the lowest value of the product with the lowest price version, so the middle and high prices don’t seem so bad.

And of course, who wants to buy the cheapest version of something? People generally feel better buying a better product, so the cheapest one might only exist to do that. Also a good strategy for wine in restaurants, sell the wine with the lowest supply cost at the middle price, because people will opt for the middle priced item over the lowest price.