Ski-Lift Pricing, with Applications to Labor and Other
AbstractThe market for ski runs or amusement rides often features admission tickets with no explicit price per ride. Therefore, the equilibrium i nvolves queues, which are systematically longer during peak periods s uch as weekends. Moreover, the prices of admission tickets are much l ess responsive than the length of queues to variations in demand, eve n when these variations are predictable. Despite the queues and stick y prices, the authors show that the outcomes are nearly efficient und er plausible conditions. They then show that similar results obtain f or some familiar congestion problems and for profit-sharing schemes i n the labor market. Copyright 1987 by American Economic Association.
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 77 (1987)
Issue (Month): 5 (December)
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