Wednesday, June 15, 2016

Renting a Camel in Marrakesh

Few interactions inspire a more jaundiced view of capitalism unleashed than buying airplane tickets into a small market airport. I can buy one coach airplane ticket into, say, FCA in Montana for only slightly more than the corresponding first class ticket to significantly more distant the East coast, but if I want three, the per ticket price nearly doubles. This is occurs because models and the computer can gauge rather accurately the marginal value of each unsold seat, and charge accordingly. This is the way efficient markets are supposed to work and it's annoying as hell to the consumer.

I say bring back the old days of regulated airlines with seats that can actually accommodate a human and prices that are predictable. The grief avoided will be worth the slight decline in efficiency.