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The high fixed cost and marginal cost lead to significant market power with the normal inefficiencies. In particular the price will always exceed the marginal cost such that the price benefits due to price discrimination are significant to the participants.
Information technology allows observation and keen analysis of consumer behaviour and hence allows for the articulation of various market strategies that could not have been carried out before.
Faimus answered the question on February 10, 2018 at 16:07
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