Some tennis clubs charge an up-front fee to join and a per-hour charge for court time. Others do not charge a membership fee but charge a higher per-hour fee for court time. Consider clubs in two different locations. One is located in a suburban area where the residents tend to be of similar age, income, and occupation. Which of the locations is more likely to charge a membership fee? Explain.
The first kind of pricing (up-front fee plus per-hour charge) is a kind of price discrimination, which is usually ...
Which of the locations is more likely to charge a membership fee? Explain.