Price Discrimination at the Movie Theater: Bring Your Own Candy, or See an Extra Movie
By Art Carden
Hypothesis: movie theaters often turn a blind eye to those who enter the theater with their own candy and are sometimes inconsistent in their enforcement of rules against theater-hopping. This is a way to price discriminate given that the marginal cost of adding another person to a half-empty theater is basically zero.
Am I missing anything? Is there a literature on this I need to see?
Note: inspired by a discussion in my online MBA class.