Price discrimination, time and money at the theatre

Mixed Blood Theatre of Minneapolis has an interesting pricing model, which they call ‘radical hospitality‘:

Radical Hospitality erases economic barriers in pursuit of building a truly inclusive, global audience. Whether a patron is a long-time Mixed Blood attendee, a new immigrant living in Mixed Blood’s Cedar-Riverside neighborhood, a person with low income or disabilities, a college student, or someone who has never been to theater, he or she will be welcomed, free of charge—with radical hospitality.

How does it work?

There are two ways to see a performance:

1) First come, first served, no-cost admission: Mixed Blood holds a significant number of seats for no-cost admission on a first come, first served basis for each performance. To access these seats, provide your contact information in the lobby (lobby opens two hours prior to the show). Seating begins 30 minutes before show time and is open (no assigned seats).

2) Guaranteed admission: Audience members who want to guarantee entry can do so for a $20 fee paid in advance online or by calling the box office at (612) 338-6131. Seating begins 30 minutes before show time and is open (no assigned seats).

I like it. It is feasible price discrimination because many audience members will prefer to just pay the $20 for a guaranteed ticket rather than come to the lobby two hours early to get on the list for no-cost admission; in other words, it segments buyers in a way that won’t have everyone rushing for the free seats. It gives those with more time, and less money, a chance to enjoy some theatre. It doesn’t solve the ‘access’ problem by giving everyone free admission, which is a poorly targeted subsidy, and costly to the company, which needs funds to produce its shows.