  Extensive research shows that consumers are generally averse to price
discrimination. However, instruments of differential pricing can benefit
consumer surplus and alleviate inequity through targeted price discounts. This
paper examines how these outcome considerations influence consumer reactions to
price discrimination. Six studies with 3951 participants show that a large
share of consumers is willing to costly switch away from a store that
introduces a discount for low-income consumers. This happens irrespective of
whether income differences are due to luck or merit. While the
price-discriminating store does attract some new high-income consumers, it
cannot compensate the loss of existing consumers. Allowing for altruistic
preferences by simulating a market mechanism increases costly support for price
discounts, but does not alleviate consumer aversions. Finally, we provide
evidence that warm glow drives costly support for price discounts.
