Sunday, December 10, 2006
Popcorn at the Movies
Many people have been pondering for years why popcorn at the movies cost so much. Not many people think on an economic level, but it is actually very simple. They cost so much because there's no other option.
The movie theatre had a monopoly on food once you're inside. Bringing food in is not permitted and there are no other vendors inside for competition. Therefore, the theatre can practically charge anything that they feel like and either you can accept it (buying it) or decline (not buying). Many people can't avoid temptation, so they end up buying anyway.
A way to fix this and/or alleviate this problem is not buying anything from the concession for a month straight everywhere. The theatre chains would eventually give in due to lost revenue.
The movie theatre had a monopoly on food once you're inside. Bringing food in is not permitted and there are no other vendors inside for competition. Therefore, the theatre can practically charge anything that they feel like and either you can accept it (buying it) or decline (not buying). Many people can't avoid temptation, so they end up buying anyway.
A way to fix this and/or alleviate this problem is not buying anything from the concession for a month straight everywhere. The theatre chains would eventually give in due to lost revenue.
# posted by champ @ 6:44 PM 
