Yield management and price discrimination have enabled firms to increase profits and,at the same time,

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Yield management and price discrimination allow firms to capture some consumer surplus, which is the difference between what consumers are willing to pay for a product and what they actually pay. By charging different prices to different groups of consumers based on their willingness to pay, firms can increase their profits and capture more of this surplus. However, this does not necessarily involve reducing the cost of production or reducing transaction costs, nor does it involve transferring producer surplus to consumers.

Yield Management and Price Discrimination Have Enabled Firms to Increase