Simone and ana are debating the pricing strategy of several airlines. simone argues, "when airlines restrict discounted tickets to people who book well in advance and stay over on a saturday, it is not price discrimination, because the restrictions have nothing to do with individual buyers' willingness to pay." however, ana says, "the airlines' stay-over restrictions are a form of price discrimination, because they roughly split the market into two separate groups that are willing to pay two different amounts." economists generally agree with simone and ana?
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Simone and ana are debating the pricing strategy of several airlines. simone argues, "when airlines...
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