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By: Will

If I owned the building, I’d charge higher rent for the shop on the tourist route, so there could be more cost-based discrimination than you are allowing. Well-loved. Like or Dislike: 12  0

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By: Shane L

Interesting! Tourists from outside the eurozone may also struggle to translate prices into their own currency, and so might buy overpriced products without realising. Well-loved. Like or Dislike: 6  0

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By: James

You’re drawing a conclusion from three data points? Well-loved. Like or Dislike: 9  1

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By: MikeM

No, he’s drawing TWO conclusions from three data points. Well-loved. Like or Dislike: 19  0

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By: 164

How much for the coffee you brew yourself? 0  0

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By: Enter your name...

Well, more than that: three prices for coffee, but also three prices for real estate, three assessments 0f the tourist value for each location, three assessments of the quality of the coffee, etc. 1  0

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By: 164

For a different perspective, ask your self how much does the coffee you brew your self cost? 0  0

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By: Pedro

I understand your point of view. Altought I think if tourist bakery increases prices to a certan limit you will see a demand elasticity inverson, assuming that tourist are racional agents. Obviously! 0  0

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By: RF

I’m not sure I buy the cost-based explanation – rent is an (overhead) fixed cost. They may need higher prices to cover this, but that comes back to demand as well – the area must have more affluent...

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