Do farang get charged extra?

[nidieunimaitre]

Edit: the quote that I replied to, disappeared....

This is a reply to the example of the milk shake seller.

At first reading your example seems correct.

But it is based on a monopoly situation, and surely nobody will argue that monopolies (or cartels) are efficient?

Also, in your example, no doubt Gates will find somebody to go shopping for him, don't you think?

Conclusion: double pricing is not economically efficient, and can not be defended as part of a free market system.

The existence of multiple pricing is actually a proof that there is no free market.

Of course, some people confuse free market with wild west capitalism.

my example is not necessarily a monopoly - the "shop" can just as well represent an industry of shops - the same logic follows - i'm not sure what your point is that bill gates could send someone to buy the milkshake for him - i'm trying to explain that price discrimination is economically efficient - not that it is easy to implement (which it certainly is not)

price discrimination IS economically efficient -quite simply charging different prices to different consumers (i.e. matching to their ability/ willingness to pay) allows the business to make the same profit at a lower average price and/or by giving more consumers to buy the good / service (and gain utility)

another example... lets imagine there is a circus (not necessarily the only circus) which costs 1000 dollars per show to operate and lets imagine there is space in the circus for 100 spectators (all of which have identical seating and an equally good view of the circus)... and lets say the circus plans to visit a very poor city where all the local people can only afford to spend 1 dollar on visiting such a show except for the city's wealthy mayor (a circus lover who often dresses as a clown and rides an elephant to official appointments) is willing to pay 1000 dollars to see the show...

with a 1 price system, the circus charges 1000 dollars for a ticket, only the mayor can attend, and the circus makes zero profit

with price discrimination, non-mayors pay 1 dollar, the mayor pays 1000 dollars (total 1099 dollars sales), 99 more people get the chance to see the show and the circus makes 99 dollars profit to invest in more chairs so even more can enjoy watching the monkeys dance next time

1. If all the other sellers apply that same policy, then we are talking about a cartel, which is basically the same as a monopoly, unefficient.

2. you confuse "efficient" with maximum profit. For a system to be economically efficient, it has to find a ballance between all the parties involved, producers/ sellers AND buyers.

3. A system that bases its succes on a small group of high-payers is not stable or efficient, just imagine that the high-payers disappear or find a way to go around the system, such as in your example: Gates sending a low-payer to do his shopping.

4. So you do not like the free market? Why not? Do you want wild west capitalism instead, take what you can, and do not worry about anybody else?

5. I very much enjoyed this discussion, but your remark "price discrimination is beautifull' is a little too much TV style.

[zyphodb]

We never pay more on things like entrance to national parks. Under ground Aquariums and never never more on golf courses!

I bet you have a Thai driving licence or yellow book or maybe speak fluent Thai without at least one of these things, or maybe married to a police officer or politician you will be overcharged. I think the OP was probably referring to someone without any of these advantages don't you???

[kirstymelb101]

I was in Sukhothai during Loi Kratang festival and for local Thais they charged 20bht per hr to hire the bikes, and tourists where charged 200bht.

[longstebe]

Of course we do. The sooner you get over it, the better. If you feel that strong about it, don't visit national parks, street vendors, motorcy taxis, tuk tuks, market stalls......is there anything else.....:-)

Go to big C then stay home.

Sent from my GT-I9505 using Thaivisa Connect Thailand mobile app

[thehelmsman]

Depends if you look stupid or not.

It must be my lazy eye.

[stoli]

Attitude and behavior oftenly dermines the price.

Sing and dance like a performing monkey and you might get fed for free.

This would require a work permit.

[lostmebike]

We never pay more on things like entrance to national parks. Under ground Aquariums and never never more on golf courses!

You have never been overcharged???

C'mon, this would be virtually impossible living in a foreign country. You may think that's the case but I'm quite sure you have been overcharged a fair few times!

I have produced work permits and my yellow book at a few places and still been met with the higher charge even after speaking calm, polite Thai with them.