Thursday, June 29, 2017

Two-way Bundling

Here is the pricing schedule from a recent trip to Dolmabahçe Palace. Note that the average price per person falls for families and that the price per museum visited falls as you bundle the Official Part with the Family House.

1 comment:

  1. By allowing kids to attend for free, it is an incentive for families to attend, similar to "kids eat free" at restaurants. By getting families through the door, there is an increased opportunity for additional spending by parents for food, beverages, or in the gift shop. By indirect price discrimination, the incentives (reduced entry fee) are available to a greater portion of the population by where they bring in the most revenue and the other attendees are more price in-elastic where they are not price sensitive.