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Ski-Lift Pricing, with Applications to Labor and Other.

Resource type
Authors/contributors
Title
Ski-Lift Pricing, with Applications to Labor and Other.
Abstract
The market for ski runs or amusement rides often features admission tickets with no explicit price per ride. Therefore, the equilibrium i nvolves queues, which are systematically longer during peak periods s uch as weekends. Moreover, the prices of admission tickets are much l ess responsive than the length of queues to variations in demand, eve n when these variations are predictable. Despite the queues and stick y prices, the authors show that the outcomes are nearly efficient und er plausible conditions. They then show that similar results obtain f or some familiar congestion problems and for profit-sharing schemes i n the labor market. Copyright 1987 by American Economic Association.
Publication
American Economic Review
Volume
77
Issue
5
Pages
875-90
Date
1987-12
Citation
Barro, R. J., & Romer, P. M. (1987). Ski-Lift Pricing, with Applications to Labor and Other. American Economic Review, 77, 875–890.
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