Note: This is post #51 in a weekly video series on basic microeconomics.

Is price discrimination bad for society? How does it affect output, and what is its effect on social welfare? If price discrimination increases output, it is likely beneficial for society. If output isn’t increased, social welfare is reduced. In this video by Marginal Revolution University, economist Tyler Cowen consider the effect of price discrimination.

(If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: Introduction to price discrimination