Wouldn't the market purist argue that this just means the good is mispriced, and tickets should actually be what the price is with the premium added? What you really need is to just raise the prices of the tickets and the price to jump the queue?
Wouldn't the market purist argue that this just means the good is mispriced, and tickets should actually be what the price is with the premium added? What you really need is to just raise the prices of the tickets and the price to jump the queue?
He's concerned not about allocating the suffering optimally (to the people least willing to pay to reduce it, for example because they are in excellent health or couldn't afford the flight otherwise) but about reducing the total amount of suffering, which is far more important.
In other contexts, the main benefit of market mechanisms is precisely that they vastly reduce suffering, for example by stimulating the production of socially valuable goods. Is there a way market mechanisms for boarding order could have such a benefit? For example, by rewarding people who board in an order that minimizes overall boarding delay? I'm skeptical.
My guess is the hidden fees end up making businesses more money
In high capital businesses like airlines and supermarkets it seems to play out all over the place these days.