ABSTRACT
The next time you get on a plane to fly somewhere, ask the person next to you how much they paid for their ticket.1 Chances are, what they paid for their ticket is not what you paid for yours. Even though both of you are flying to the same destination and receiving exactly the same kind of service, each has paid a different price.Whenever different prices are charged to different consumers for the same good or service, economists say that price discrimination has occurred. Examples of price discrimination are common. Apart from airline tickets, price discrimination is found for hotel rooms, car rentals and rail tickets.2
