TheOtherDave comments on Things I Wish They'd Taught Me When I Was Younger: Why Money Is Awesome - Less Wrong

32 Post author: ChrisHallquist 16 January 2014 07:27AM

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Comment author: Jiro 16 January 2014 08:57:31PM -1 points [-]

Customers prefer constant prices. Aside from the perceived unfairness, there are, again, transaction costs. Any time spent by customers trying to figure out how to get the lowest price is still a loss.

Airlines get away with it because airline seats are in limited supply, making it a seller's market. The buyers have to take whatever the airlines give them. There's certainly a fair degree of public outcry about it; the fact that there isn't more is because of a combination of people not understanding it, the fact that most people only buy airline tickets occasionally, and the fact that there's nothing the public can do about it.

Comment author: TheOtherDave 16 January 2014 09:30:04PM 6 points [-]

Customers prefer predictable prices. They don't have to be constant.

E.g., if tickets for an event are $15 in advance and $25 at the door, and this is stated clearly up front, most customers are OK with that... we can plan early and save $10, or we can keep our options open and pay a premium for that privilege.