Same price, different goods

Today’s Washington Post has an article on why movie ticket prices are pretty much the same for all movies at all times [Hat Tip: Greg Mankiw]. I have pondered this question before in relation to iTunes song pricing. The Post article cites research arguing that the answer lies in the prices paid by theatres for movies; in particular, that distributors want that outcome. And why might they do that? Well that appears to be hard to gauge. It may be because movie theatres sell other things (popcorn etc) whose price distributors have no direct control of. The original article by Orbach and Einav has a good discussion but no real resolution. This is one to ponder further.

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