Monday, December 24, 2012

Cinemark stops discriminating for two days! Oh, you did not know they discriminated against you? They do so to the Third Degree. I took a picture to PROVE IT!!

Went to the movies tonight. This sign was on the door.

In this case, discrimination can  work out for you.  Movie theaters are an example used in Microeconomics to illustrate the concept of Price Discrimination.  If a business can segment its customers by their willingness and ability to pay, then it can capture some "consumer surplus". Some consumers will pay the posted market price, but some will pay less, depending on how the business chooses to efficiently segment their customer base.  Some do it through coupons, by age (Senior Citizen OR children under certain ages), or time of day (matinee pricing).

This strategy is worth it to the business because it fills seats that might go empty. People have lots of alternatives on a normal day (leisure or work).

Not so on Christmas Day.  No need to discount on a day that people will be looking to do something soon after the opening of presents. 

Plus after listening to Uncle Leo tell his same stories for the 20th time, you are willing to pay the going price (and more) for a ticket to escape.  Tell me it isn't true.  :)

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