Partial price discrimination can cause some customers who are inappropriately pooled with high price customers to be excluded from the market. For example, a poor student in the U.S. might be excluded from purchasing an economics textbook at the U.S. price, which the student may have been able to purchase at the Ethiopian price. Similarly, a wealthy student in Ethiopia may be able to or willing to buy at the U.S. price, though naturally would hide such a fact from the monopolist so as to pay the reduced third world price. These are deadweight losses and decrease a monopolist's profits. Deadweight loss is considered detrimental to society and market participation. As such, monopolists have substantial economic interest in improving their market information and market segmenting.
Partial price discrimination can cause some customers who are inappropriately pooled with high price customers to be excluded from the market For example a poor student in the US might be excluded from purchasing an economics textbook at the US price which the student may have been able to purchase at the Ethiopian price Similarly a wealthy student in Ethiopia may be able to or willing to buy at the US price though naturally would hide such a fact from the monopolist so as to pay the reduced third world price These are deadweight losses and decrease a monopolist's profits Deadweight loss is considered detrimental to society and market participation As such monopolists have substantial economic interest in improving their market information and market segmenting