At Slate, Matthew Yglesias takes apart the argument by a Five Guys hamburger franchise owner that the Affordable Care Act (ACA, or "Obamacare"), with its requirements on employee health insurance, will drive up his prices. Yglesias says: no, if it makes sense to increase prices in light of potential increased profits, then that is so whether or not there are increased health insurance costs on the employer. Instead, he argues, the increased costs will simply cut into firm profits. Is that correct? Not quite. It is worth considering in a bit … [Read more...]
Tips, Charities and Businesses
This blog holds that arts managers can learn interesting things about pricing from non-arts businesses, and today I want to look at pricing of internet content. Preparation and presentation of content is not costless, and has to be financed somehow. It might be financed by the content provider herself, happy to do the work of writing a blog with no expectation of financial reward for the activity. Or it might be financed through bringing viewers to advertisers, or through a "tip jar", or through charging for full access to content, with only … [Read more...]
Why does the Indianapolis Museum of Art have Free Admission?
Preamble: I know what I don't know. Specifically, when looking at any arts organization and its menu of prices, I do not have insider knowledge of its current or potential audience, its donors, or its costs. So when I comment on the price structure of any specific museum or other arts firm, I do so only by asking questions, not by advising what it should or should not change. And with that cleared up ... Why does the Indianapolis Museum of Art have free admission? In her neighboring blog, Judith Dobrzynski describes the fiscal troubles at … [Read more...]