The Pricing of a Round of Golf: The Inefficiency of Membership Fees Revisited
AbstractThis article argues that the use of membership fees at shared facilities, such as private golf courses, is not per se evidence of inefficient pricing as implied by the club theory literature on variable usage. The author reconciles the inconsistency between the predictions of existing models and empirical evidence by accounting for members' opportunity cost of time and the effect of congestion on members' utility In particular, this research shows that the simplified nature of congestion assumed in the literature ignores the positive externalities that members receive from a members-only club.
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Bibliographic InfoArticle provided by in its journal Journal of Sports Economics.
Volume (Year): 2 (2001)
Issue (Month): 4 (November)
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- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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- Frank Limehouse & Michael Maloney & Kurt Rotthoff, 2012. "Peak-Load Versus Discriminatory Pricing: Evidence from the Golf Industry," Review of Industrial Organization, Springer, vol. 40(3), pages 151-165, May.
- Johan Lundberg & Sofia Lundberg, 2004. "Join the Club - On the Attractiveness of Golf Club Membership," ERSA conference papers ersa04p242, European Regional Science Association.
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