American Carriers Have a Favorite New Pricing Trick

Correct! - A solo traveler who doesn’t stay over the weekend pays the highest fare under the new pricing strategy.

Well Done! - A firm that price discriminates sells its goods and services at different prices to different buyers. Airlines are charging a higher fare to solo weekday travelers than to others, although the flight is the same for everyone.

That's Right! - Business travelers, who often fly solo during the week, are willing to pay a higher fare than leisure travelers. By differentiating groups of travelers, passengers pay a fare closer to their maximum willingness to pay, and airlines capture consumer surplus.