3 ms·
> Eh, how is variable pricing a source of profit for the restaurateur? Their profit is calculated on a fixed price. More people dining means more profit probab
by red_trumpet 5y ago
> Eh, how is variable pricing a source of profit for the restaurateur? Their profit is calculated on a fixed price.
More people dining means more profit probably.
> (citation needed)
Yes, that may indeed be a problem.
- arcturus17 5y ago> More people dining means more profit probably. I gave a precise argument to why I think tips do not increase demand for the service - most people in the US, regardless of wealth, pay at least the minimum tip. GP's argument that there is a substantial price segmentation would only hold if poorer people did not pay the tip.