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Walt Disney World charges residents of Florida lower prices for various theme park ticket packages than it charges non- Florida residents. For example, in 2013 an adult Florida resident was charged $190.64 for a three-day "Magic Your Way" package that included lodging at a Disney Resort hotel and a ticket to one theme park per day. The price of the same package for a non-Florida resident was $326.96.
a. What is Disney assuming about the willingness to pay of Florida residents? Why might it make this assumption?
b. How might Disney keep Florida residents from buying Walt Disney World tickets at discounted prices and reselling them to non-Florida residents at higher prices?
c. Disney offers discount tickets to students at universities located in Florida, but does not offer discount tickets to students at most universities in other states. Briefly explain Disney's strategy. Would you expect the discount Disney offers to students at Florida universities to be higher or lower than the discount it offers to other residents of Florida? Briefly explain.
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