Airlines can price discriminate for seats on a plane by determining people's - to pay for different types of seats. although not all customers will pay to check a bag, the airline makes more - because it can divide customers into - groups. those who do not want to pay to check a bag have - demand and will pack everything in a carry-on. customers who have - demand for checked luggage will pay to check their bags.

Airlines can price discriminate for seats on a plane by determining people's willingness to pay for different types of seats. Although not all customers will pay to check a bag, the airline makes more money because it can divide customers into different groups. Those who do not want to pay to check a bag have low demand and will pack everything in a carry-on. Customers who have high demand for checked luggage will pay to check their bags. Price discrimination refers to a company charging different prices to different people. One's willingness to pay the price they want to charge allows this type of behavior to continue to happen. Based on your seat selection the airline will change the price of the ticket, the most popular seats are often more than the others.