May 30, 2006
Amusement Park Pricing

Put my money on Six Flags. Price discrimination works.

The most talked-about change at Cedar Point amusement park in Ohio isn't the new supersized swing that catapults thrill seekers 125 feet into the air.

It's the drop in prices -- from a $5 cut in admission for adults, to cotton candy that now sells for a quarter. Just about every food item is cheaper or the same price as last year.

Cedar Point hopes the moves will increase attendance after a down year in 2005. Knott's Berry Farm, owned by the same company, has made similar price reductions at the theme park in Southern California after a disappointing year.

Six Flags, meanwhile, has increased the gate price at most of its parks. Adult admission at Six Flags Great Adventure in New Jersey is $59.99 -- that's up $11 -- but the price does not include a number of discounts the park is offering.

[HT: Ann Zerkle]

[Link to Walter Oi's classic article on the Disneyland Dilemma.]

Posted by Robert Lawson at 10:08 AM in Economics  ·  TrackBack (0)

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