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by mrguyorama 436 days ago
The entire point of doing price discrimination is so that you can keep a price high while tamping down any market pressure that would normally encourage you to lower your prices.

If McDonalds had to choose one price for an 8 piece nuggets, they would have to make a choice to either be ultra cheap, and anyone could happily afford those McDonalds nuggets like it was the 80s again, or they could choose to target up market, in which case they would compete with other expensive nuggets and some other business could take the market share for "extremely cheap nuggets"

Price discrimination distorts natural market forces that would otherwise drive competition, create opportunity, or "punish" hostile practices.