Perfect price discrimination is always bad, while imperfect price discrimination can be either good or bad.

Question

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Imperfect price discrimination can sometimes lead to more efficient outcomes by allowing firms to increase sales to customers who are willing to pay more while also offering reduced prices to customers who are more price-sensitive. This can lead to increased welfare for both the firm and the consumers. However, it can also lead to some consumers being charged unfairly high prices, which is undesirable. Perfect price discrimination, on the other hand, always results in some consumers paying the highest possible price, which is generally considered undesirable.

Perfect Price Discrimination Is Always Bad, While Imperfect Price Discrimination