Saturday, May 21, 2005

Is George Lucas just nicer than every other monopolist?

So the Episode III has opened, and according to CNN, midnight screenings at 3000 theatres in the US grossed an estimated US$16.5m — more than twice the midnight revenue of The Lord of the Rings: the Return of the King in 2003.

That some people are willing to stand in line for hours, forgo sleep and otherwise incur costs suggests that they are willing to pay an amount that far exceeds the admission price, observed Anthony's fellow driver, who also holds an economics degree from Desh. This begs the question why Lucasfilm doesn't price-discriminate by charging a higher price on the first weekend and a lower price subsequently?

More on the movie in due time.