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Who Benefits from Price Discrimination? In Scenario 1, where there is no price discrimination, the monopolist charges a single price, and consumers with higher willingness
Who Benefits from Price Discrimination? In Scenario 1, where there is no price discrimination, the monopolist charges a single price, and consumers with higher willingness to pay may benefit from paying a lower price than their maximum willingness to pay. In Scenario 2, with perfect price discrimination, the monopolist captures all consumer surplus, and the entire benefit of the transaction goes to the monopolist in the form of higher profits. Consumers may not benefit directly from lower prices, but the monopolist benefits by extracting the maximum amount each consumer is willing to pay
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