The social welfare of price discrimination
Religion & Liberty Online

The social welfare of price discrimination

Note: This is post #51 in a weekly video series on basic microeconomics.

Is price discrimination bad for society? How does it affect output, and what is its effect on social welfare? If price discrimination increases output, it is likely beneficial for society. If output isn’t increased, social welfare is reduced. In this video by Marginal Revolution University, economist Tyler Cowen consider the effect of price discrimination.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: Introduction to price discrimination

Joe Carter

Joe Carter is a senior writer for The Gospel Coalition, author of The Life and Faith Field Guide for Parents, the editor of the NIV Lifehacks Bible, and coauthor of How to Argue Like Jesus: Learning Persuasion from History’s Greatest Communicator. He also serves as an associate pastor at McLean Bible Church in Arlington, Va.