site banner
PaperclipPerfector  4d ago (text post)   2820 thread views

Friday Fun Thread for January 9, 2026

Be advised: this thread is not for serious in-depth discussion of weighty topics (we have a link for that), this thread is not for anything Culture War related. This thread is for Fun. You got jokes? Share 'em. You got silly questions? Ask 'em.

2
Top Bottom Old Controversial Comments
Jump in the discussion.

No email address required.

I feel like that sort of thing is common with car makers... there's a "base model" with basically nothing - no cruise control, no power windows, etc. - and then there's the reasonably priced first trim upgrade that gives you all the things most people expect at a minimum in modern cars.

The steelman of price discrimination is that it enables a lower floor to a product's price than if it had to offer a single price point, which helps accessibility. It can even be good, in that the people who overpay for a few extras (especially for stuff like "color stitching" on seats or other visual upgrades which are pretty much just signaling that they could afford to pay for a fancy trim) are subsidizing the product for the people who get the cheaper ones. That if you made it illegal and that all cars had to have only one trim, it'd be a middle trim, it'd be more expensive than the current middle trim and the people who could only afford the base trim now just can't buy it anymore.

I feel like there needs to be a name for the steelman that like, obviously isn't true and is a fig leaf for the money grubbing that the company wanted to do anyways. Like, does anyone actually believe that advertising is "connecting people to goods and services that will better their life"? Or that price discrimination isn't immediately used to capture all the excess value of a transaction*?

* So in theory, every transaction has two winners; both people only made the trade if they believe that the trade is worth more for them than what they're giving away (tautologically - would anyone voluntarily make a trade that they thought was all downside?) The issue with price discrimination is that instead of both parties capturing some excess value from the trade, one party captures almost all the excess value, while the other captures epsilon (as in, just enough to make the trade worthwhile, but no more).

What makes it true or not is how healthy the competition and the market is. A company that only did this to extract more money from each sale would find itself having a hard time finding buyers compared to cheaper competitors. Companies that offer a genuinely good deal don't do it from the goodness of their heart, they do it because it's also a valid business strategy to aim at making a larger number of sales with a lower profit margin.

The issue with price discrimination is that instead of both parties capturing some excess value from the trade, one party captures almost all the excess value, while the other captures epsilon (as in, just enough to make the trade worthwhile, but no more).

In the case of "signaling" addons, it's quite possible that both the car manufacturer and the customer are happier with price discrimination. After all, the point of signaling is that you're showing everyone you paid for something expensive because you have money. If it was cheaper, or if it was available on every trim, that exclusive paint color or colored stitching the rich person paid for wouldn't be useful to signal how rich he is.

A company that only did this to extract more money from each sale...

That is literally every company that uses price discrimination. They don't get punished either because of market inefficiencies or because they sell goods that aren't interchangeable with competitors' goods.

The frontman :)

What is this place?

This website is a place for people who want to move past shady thinking and test their ideas in a court of people who don't all share the same biases. Our goal is to optimize for light, not heat; this is a group effort, and all commentators are asked to do their part.

The weekly Culture War threads host the most controversial topics and are the most visible aspect of The Motte. However, many other topics are appropriate here. We encourage people to post anything related to science, politics, or philosophy; if in doubt, post!

Check out The Vault for an archive of old quality posts. You are encouraged to crosspost these elsewhere.


Why are you called The Motte?

A motte is a stone keep on a raised earthwork common in early medieval fortifications. More pertinently, it's an element in a rhetorical move called a "Motte-and-Bailey", originally identified by philosopher Nicholas Shackel. It describes the tendency in discourse for people to move from a controversial but high value claim to a defensible but less exciting one upon any resistance to the former. He likens this to the medieval fortification, where a desirable land (the bailey) is abandoned when in danger for the more easily defended motte. In Shackel's words, "The Motte represents the defensible but undesired propositions to which one retreats when hard pressed."

On The Motte, always attempt to remain inside your defensible territory, even if you are not being pressed.


New post guidelines

If you're posting something that isn't related to the culture war, we encourage you to post a thread for it. A submission statement is highly appreciated, but isn't necessary for text posts or links to largely-text posts such as blogs or news articles; if we're unsure of the value of your post, we might remove it until you add a submission statement. A submission statement is required for non-text sources (videos, podcasts, images).

Culture war posts go in the culture war thread; all links must either include a submission statement or significant commentary. Bare links without those will be removed.

If in doubt, please post it!


Rules


Recommended Posts And Communities

Recommended Realtime Chats