Price discrimination explains everything that we observe price discrimination. For something like Twitter, I think that's a very natural thing. You want to charge more for the people who are willing to pay. And if they were to experiment and keep trying, they could find a way to price discriminate and make the service profitable.
Economist and author Arnold Kling talks with EconTalk host Russ Roberts about the recent drama in the tech world--Elon Musk's acquisition of Twitter, the collapse of FTX, and the appearance of ChatGPT. Underlying topics discussed include the potential for price discrimination to make social media profitable, whether you could tell Jeff Bezos from Sam Bankman-Fried early on, and the role of human beings in the world of artificial intelligence.