Only Schmucks — and People With High Search Costs — Pay Retail

Source: EconLog
by Art Carden

“When should you pay retail? Pay careful attention to the costs of looking for a better deal. Consider tickets to a sporting event or a concert. I’ve paid retail (plus ‘convenience charges’) to buy tickets to a minor league hockey game when, in previous years, I would have just scoured the parking lot looking for people with an extra ticket or two to unload. Needing four seats, wanting to sit close to friends, and having a busy day such that we didn’t arrive until after the puck dropped, it was much easier to bite the bullet and pay retail.” (03/29/24)