{"id":1106,"date":"2014-03-11T11:53:00","date_gmt":"2014-03-11T18:53:00","guid":{"rendered":"http:\/\/www.artsjournal.com\/worth\/?p=1106"},"modified":"2014-03-11T11:53:00","modified_gmt":"2014-03-11T18:53:00","slug":"when-dynamic-pricing-makes-sense","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/worth\/2014\/03\/when-dynamic-pricing-makes-sense\/","title":{"rendered":"When dynamic pricing makes sense"},"content":{"rendered":"

\"use<\/a>“Let’s move before the raise the parking rate.” Palmerston North, New Zealand, has the latest in dynamic pricing for parking. From Offsetting Behavior<\/a> (via Marginal Revolution<\/a>):<\/p>\n

The 33-space carpark in the city\u2019s Church Street has been kitted out with solar-powered sensors by local parking technology firm Frogparking that can tell which parks are occupied. Drivers pay for parking through their smartphone.<\/p>\n

Frogparking has been providing ticketless parking systems to Palmerston North for a few years, but director Don Sandbrook said the new system was its most advanced yet, with cheaper parking if there were lots of spaces available and higher prices if they were nearly all taken. The tariff ranges from 50 cents to $2 an hour.<\/p><\/blockquote>\n

Makes sense to me: The system charges drivers according to the value of the space, which is determined by its scarcity; it is real-time; it provides some incentives to shop when the area is less crowded. And it doesn’t come with some of the problems <\/a>that arts organizations have when implementing dynamic pricing: cuts in prices don’t send an adverse signal about the quality of the experience (50 cents or $2 an hour, a parking space is just a parking space); and it does not carry the problem that arts goods have of people being cautious about buying in advance if they think the ticket price might fall before the concert date – there are no advance purchases of parking.<\/p>\n

Dynamic pricing: yes for parking spaces, still cautious about applying to the arts.<\/p>\n","protected":false},"excerpt":{"rendered":"

“Let’s move before the raise the parking rate.” Palmerston North, New Zealand, has the latest in dynamic pricing for parking. From Offsetting Behavior (via Marginal Revolution): The 33-space carpark in the city\u2019s Church Street has been kitted out with solar-powered sensors by local parking technology firm Frogparking that can tell which parks are occupied. Drivers […]<\/p>\n","protected":false},"author":3,"featured_media":1107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26],"tags":[],"class_list":{"0":"post-1106","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-issues","8":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/03\/kiwi.jpg","jetpack_shortlink":"https:\/\/wp.me\/p3dIW5-hQ","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2346,"url":"https:\/\/www.artsjournal.com\/worth\/2018\/04\/lets-move-before-they-change-the-parking-rate\/","url_meta":{"origin":1106,"position":0},"title":"Let’s move before they change the parking rate","author":"Michael Rushton","date":"April 15, 2018","format":false,"excerpt":"No, I cannot quit writing about economic-impact-of-the-arts reports. Let's try something a little more focused, and talk about ... parking. Parking is part of the cost of attending a show, if it takes place in an area without free parking and you don't live nearby. Economists think charging for parking\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"vibrant!","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2018\/04\/parking-lot.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2018\/04\/parking-lot.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2018\/04\/parking-lot.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2018\/04\/parking-lot.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2018\/04\/parking-lot.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2018\/04\/parking-lot.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":363,"url":"https:\/\/www.artsjournal.com\/worth\/2013\/02\/museums-amusement-parks-and-cable-tv\/","url_meta":{"origin":1106,"position":1},"title":"Museums, Amusement Parks and Cable TV","author":"Michael Rushton","date":"February 24, 2013","format":false,"excerpt":"Should museums charge visitors according to the length of their visit? \u00a0In a recent paper Bruno Frey and Lasse Steiner argue they should. We pay per hour when we park our cars, so why not when we go to view art? This question came to mind during the recent flare\u2026","rel":"","context":"In \"bundling\"","block_context":{"text":"bundling","link":"https:\/\/www.artsjournal.com\/worth\/tag\/bundling\/"},"img":{"alt_text":"\"Zero marginal cost, you say?\"","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/02\/Family_watching_television_1958-300x279.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1660,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/10\/what-is-dynamic-pricing-a-clarification\/","url_meta":{"origin":1106,"position":2},"title":"What is dynamic pricing? A clarification (updated)","author":"Michael Rushton","date":"October 27, 2014","format":false,"excerpt":"'Dynamic pricing on websites: illegal or unfair?', asks\u00a0\u00c9lo\u00efse Gratton on her blog. But the post confuses various pricing strategies, not all of which are 'dynamic pricing'. Dynamic pricing, also known as \u201cadaptive pricing\u201d, \u201cdynamic pricing\u201d or \u201cdiscriminatory pricing\u201d \u00a0or\u00a0first-degree price discrimination, is defined as a practice where organizations attempt to\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"first-degree","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/flea-market.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":2972,"url":"https:\/\/www.artsjournal.com\/worth\/2024\/02\/today-in-dynamic-pricing\/","url_meta":{"origin":1106,"position":3},"title":"Today in dynamic pricing","author":"Michael Rushton","date":"February 27, 2024","format":false,"excerpt":"I have a chapter on dynamic pricing in my old book. In a nutshell: dynamic pricing is where the seller adjusts the current price upwards or downwards based upon the most recent information on market conditions. This is not the same as a cinema having discount Tuesdays, since it will\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2024\/02\/image-1.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":1976,"url":"https:\/\/www.artsjournal.com\/worth\/2016\/02\/dynamic-pricing-and-price-discrimination-are-not-the-same-thing\/","url_meta":{"origin":1106,"position":4},"title":"Dynamic pricing and price discrimination are not the same thing","author":"Michael Rushton","date":"February 6, 2016","format":false,"excerpt":"But a recent article in The Economist (!) confuses the matter. Dynamic pricing occurs when sellers adjust prices on a frequent basis to account for varying shifts in demand, or limitations in supply. Uber raises fares when demand spikes upward and drivers are scarce; sports teams cut prices for tickets\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"let's get this straight","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2016\/02\/apples-and-oranges.jpeg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1365,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/06\/dynamic-pricing-at-the-zoo\/","url_meta":{"origin":1106,"position":5},"title":"Dynamic pricing at the zoo","author":"Michael Rushton","date":"June 20, 2014","format":false,"excerpt":"The Indianapolis Zoo has adopted dynamic pricing. The policy is combined with increased differentiation in prices between low-demand weekdays and high-demand weekends, and a general increase in prices arising from the increased demand that will flow from the new orangutang exhibit. The Indiana Business Journal reports: The zoo expects the\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"come see me on a cloudy Tuesday","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/06\/Orangutang.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/06\/Orangutang.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/06\/Orangutang.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/1106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/comments?post=1106"}],"version-history":[{"count":0,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/1106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media\/1107"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media?parent=1106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/categories?post=1106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/tags?post=1106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}