and, as mentioned before, discrimination allows for a more flexible reallocation of capital, benefiting the customer by increasing research and development of other goods and services.

In the article "Taken to the Cleaners?" The author presents a real world case where dry cleaners are seemingly arbitrarily using price discrimination to mark up the price of dry cleaning for women's blouses vs. men's shirts. This is definitely a third-degree price discrimination, where different consumer's pay different prices. There are two separate markets, one composed entirely of men (or women who wear men's clothes), and the other composed entirely of women. Each is forced to pay different amounts for essentially the same service, thus this is price discrimination of the third degree. (Taken to the Cleaners?, 1998)

There are many real life examples of price discrimination. Take, for instance, the ubiquitous feature of most bars and nightclubs, "Ladies' Night," which offers discounts...
[ View Full Essay]