Yes. The long-term question is hard. In the narrow sense of allocating one conceptual production run, there is no aggregate gain in price discrimination, just a reallocation to producers. 1/

In the long-term, the question is how you sustain industries that structurally can’t survive with price set to marginal cost. One solution is to tolerate exploitation of market power, whether by restraining output or price discriminating. 2/

I don’t think that’s a good answer, but it is an answer. If you want to know what I think is a good answer, do I have a post for you! /fin drafts.interfluidity.com/2024/09/04/i...