Restaurants are a bad example. First, have you tried getting a seat at a trendy restaurant on Friday night in SF? Second, most popular restaurants deliberately

Restaurants are a bad example. First, have you tried getting a seat at a trendy restaurant on Friday night in SF? Second, most popular restaurants deliberately charge less than an equilibrium price to avoid seeming unfair, and to keep all the seats full. Similarly, popular bands sell concert tickets for less than market rate to avoid seeming elitist, and also to make it more likely to sell out a show, which is more fun for their fans and attracts more attention for the band. In short, not all business decisions are about extracting the most money possible at the present time. There are often other longer-term considerations.