@djc obviously, however, our price discriminating mango seller may not do this. she may allocate only half the gains from upcharging the risk to subsidizing the poor. the net effect of a world where she can price discrimination is an expansion of producer surplus laundered through some redistribution of consumer surplus. the pharma industry is the obvious example here, very high sticker prices made more tolerable by discount programs for the poor, extractive rates of profit. 6/