Saturday, October 8, 2011

Menus for the Bar and Menus for the Terrace

This blog post is about some behavioral economics instituted on a society-wide scale that I discovered. Perhaps in order to shape people's behavior or perhaps in order to benefit some and in order to better utilize sparse resources?

Imaginary questioner: "What are you talking about, Joe? Do you mean realistic prices for energy to encourage less consumption?"
Joe: "Nope."
Imaginary questioner: "What about textiles and other cheap products that could take externalities into account? Ya know, like environmental and social costs that aren't listed in the price tag when I purchase an object?"
Joe: "Not that either."
Imaginary questioner: "Please tell us, wise and powerful Joseph, what do you mean?"
Joe: "It is simple, my children: prices on menus."

Probably most Spaniards would find this to be nothing special, but to me the pricing on Spanish menus lies somewhere between interesting and ingenious. First, a little bit of background: most Spanish restaurants seem to have an outdoor patio in addition to indoor seating, and many have seating at the bar as well. I don't know whether the intention is to take advantage of peoples' desire to sit outside in order to make an extra euro, or if it is to subtly encourage spendthrifts like me to sit inside, thereby making more space on the patio, but I an intrigued by the idea of people paying a little more for certain seating in a restaurant. It is like paying more money for a good seat on an airplane, and less money for a less desirable seat. I wonder what Dan Ariely would have to say about this kind of pricing on menus. I am also really curious as to what kind of reaction there would be if a restaurant in the United States priced it's menu like this, with differing prices depending on where one sits.

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