Reference no: EM132160817

In Chapter 13, the authors discuss the price discrimination policy practiced by the Hermitage museum in Russia (i.e., locals get a deep discount on the admission fee) as well as the extensive efforts used by some locals and visitors to arbitrage this price difference. Museums, theme parks, and other tourist attractions in the US also practice this local/visitor price discrimination policy in various ways --- for example, the venues may distribute coupons for discounted admission in local newspapers or by local direct mail. However, locals in the US are much less likely to arbitrage these price differences -- why?