Few people like price discrimination where some good or service is priced differently depending on the buyer. I have a visceral dislike of such discrimination. Price discrimination is an aspect of “market segmentation”.

I recall reading a paper by an economist on the Brazilian airline industry which then discriminated much as airlines in other countries did then. The discrimination attempted and largely succeeded in charging business customers more.

The paper argued that the discrimination was good not only for the airlines, but for Brazil, and perhaps even Brazilian business! The mechanism for that benefit was simple, without such discrimination airline service would be much smaller or possibly non existent. The paper argued further that even the business class benefitted. I do not recall if the paper provided numbers.

I have since heard the same claim made even more plausibly for drug pricing.

I have heard that the Great Northern Railway, built by James Hill and privately financed with a business plan to charge low rates for freight between Seattle and Chicago, but higher fees for carrying northwestern wheat to the East. The low fares were necessary to compete with seagoing freight, and the high wheat fares were necessary to make the business plan attractive.

Nonetheless I still dislike price discrimination and I do not feel guilty about defeating such discrimination when I can.