According to Freakonomics, entering the Mandalay club beach in Vegas costs $50 for men, but only $10 for women.

Explanation #1 (the Freakonomics one): This is simple demand-based price discrimination. Both genders feel more comfortable when the customers are 50/50, and because there’s less demand from women, the establishment has to cut prices for them.

Explanation #2: Women come for the beach, men come for the beach AND the women. And they’re ready to pay an extra $40 for the latter.

Explanation #3: Women and Men are both ready to pay $50 for enjoying the beach, but Women get a discount of $40 because of the annoyance of men.

Now, what would be interesting is to index this price difference with the amount of clothes worn…

This entry was posted on Monday, March 23rd, 2009 at 6:41 pm and is filed under Economics. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.