Price discrimination is charging people different prices for the same good. In Micro literature, there are three types of price discrimination: (1st degree) perfect price discrimination, (2nd degree) quantity discounts, and (3rd degree) differentiation of attributes. I will briefly explain each one of them and then link them to the dating, mating, and marriage market. I have previously given a short introduction to this market in Beauty and the Social Market. In essence dating, mating and marrying is selling yourself and your best attributes to the highest bidder. This bidding is not necessarily done with pecuniary means, but with the attributes of the person you are dating, mating, or marrying. In essence, you are selling your attributes for someone else's attributes, and sometimes you are selling your attributes at a different price, thus price discriminating.
First degree price discrimination is known as perfect price discrimination. Here the seller can identify each buyer's demand for a good or service. The example in the dating, mating, and marrying world would be street-level prostitution. Here there is no fixed price comparable to bread in the supermarket. The prostitute can decide what price to charge depending on who is standing in front of her. A very experienced prostitute might identify what she can charge for her services due to the car, watch, clothing, and attitude of her potential client. In theory, she could perfect this skill and charge each individual’s willingness to pay, thus extracting all consumer surplus.
Second degree price discrimination is known as quantity discounts. We all know that buying stuff in bulk can be cheaper, thus the same product is sold for different prices. In the dating, mating, and marrying world the same might be true for sex, where a one night stand is costly but the quantity discount of sex in a relationship decreases the price of sex. Having a one night stand is implicitly and explicitly costly. The implicit cost might arise for men going on a tinder date. To convince a good looking woman to have sex with you on the first date, one must exhibit the best attributes possible, implying a high degree of effort and monetary costs. Explicit costs arise through texting, social media research, and the meeting in a public place prior to possible sex. The cost of a one-night stand seems substantial. If you want to decrease that cost then going for the quantity discount might be the right option. In this case, a relationship is a good example of a quantity discount. You can bring the implicit and explicit costs of having sex in a relationship to an asymptotically small amount. In some cases the cost of living and the comparative advantage of the division of labor decrease your overall costs, meaning you can get sex for free.
Third degree price discrimination is being able to charge different groups of people, with different and identifiable attributes, different prices. The classic example is charging pensioners different movie theater prices than regular adults. In the case of the dating, mating, and marrying market I’d argue that vacation flings are differently priced than hometown flings. In your hometown, you are reluctant to sell your attributes under par. It might affect your social standing and the evaluation of your attributes by others might decrease. But when on vacation you can safely go out with the tanned escapist, who probably didn’t take high school very seriously. Introducing that person to your hometown friends, colleagues, and family would be a nightmare. Thus you are selling yourself (and your attributes) at different prices. On the one hand, you need Mr perfect at home but settle for less when going abroad. This is a great strategy to maximize benefits. You are like a movie theater needing to fill its seats. Charging everyone the same price won't get you far. Identifying who can pay what, and making sure that people cant arbitrage, is the optimal strategy.
In summary, I see price discrimination everywhere. An experienced street-level prostitute could perfectly price discriminate. Sex as a one-night stand is differently priced than sex in a relationship, just like one razor blade is more expensive than a 16 pack. Lastly, vacation flings are cheaper priced than hometown flings. Firms use price discrimination to maximize profits. People use price discrimination to maximize utility, in the cases above, to maximize utility via sex.
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