Rats, just when I’m starting to get close…
From the FREAKONOMICS BLOG:
I love receiving senior discounts. I got 15 percent off Wednesday’s chamber concert and 30 percent off Friday’s hot-springs entry.
These discounts represent demand-based price discrimination. Theory says such discrimination is based on employers’ perceptions of different demand elasticities across demographic groups. But are today’s seniors’ demands more elastic than those of other adults?
Their more elastic demand can’t arise from lower incomes: In 2007 the poverty rate among adults aged 19 to 64 was 15 percent, and among those 65-plus it was only 13 percent….[Rest of article]
