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A Note on Restaurant Pricing and Other Examples of Social Influences on Price
Abstract
This note tries to explain why many successful restaurants, plays, sporting events, and other activities do not raise prices even with persistent excess demand. My approach assumes that demand by a typical consumer is positively related to quantities demanded by other consumers. This can explain not only the puzzle about prices but also why consumer demand is often fickle, why it is much easier to go from being "in" to being "out" than from "out" to "in," and why supply does not increase to reduce the excess demand.
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Citations
Cited by
Social Norms and Economic Incentives in the Welfare State
Lindbeck, A., Nyberg, S., & Weibull, J. W. (1999) · The Quarterly Journal of Economics · doi:10.1162/003355399555936 · Cited by 788
(2014) · Econometrica · doi:10.3982/ecta11991 · Cited by 586
Understanding the Solar Home price premium: Electricity generation and “Green” social status
Dastrup, S. R., Graff Zivin, J., Costa, D. L., & Kahn, M. E. (2012) · European Economic Review · doi:10.1016/j.euroecorev.2012.02.006 · Cited by 221
Leech, B. L. (2010) · The Oxford Handbook of American Political Parties and Interest Groups · doi:10.1093/oxfordhb/9780199542628.003.0028 · Cited by 91
Containing COVID-19 through physical distancing: the impact of real-time crowding information
Adam, M., Werner, D., Wendt, C., & Benlian, A. (2020) · European Journal of Information Systems · doi:10.1080/0960085x.2020.1814681 · Cited by 28
Metadata
- Authors
- Becker, G. S.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 1991-10
- Volume
- 99
- Issue
- 5
- Pages
- 1109-1116
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W1982821891
- Cited by
- 735
- References
- 0
- FWCI
- 15.27
- Type
- journal article
- Language
- en
- Open access
- closed
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- Becker, G. S. (1991). A Note on Restaurant Pricing and Other Examples of Social Influences on Price. Journal of Political Economy. https://doi.org/10.1086/261791
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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
