Ladies' Day at the Beach

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The Mandalay Bay in Las Vegas boasts the Moorea Club, which it advertises as offering a European-style beach, with entry limited to ages 21 and over.

It does not advertise that the price of day use is $50 for male customers and $10 for female customers. While examples of price discrimination are ubiquitous, this is one of the purest examples of demand-based price discrimination. The service the club offers is the same to men and women: a place in the sun, which is equally costly to the club regardless of the patron’s gender.

Presumably, women’s price elasticity of demand for the pleasures of the club exceeds that of men, justifying the price differential. As a vacation spot, I’m not impressed with the Moorea Club, preferring a real beach in Europe. But I suppose the overall cost of going to an artificial European beach in Vegas is less, as there’s no need to buy a trans-Atlantic air ticket. To me this Club is useful, though; it offers one of the most clear-cut examples of this type of price discrimination.

(Hat tip: DJH)

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COMMENTS: 39

  1. ck says:

    @4
    um, that’s exactly the implication of this article and the reason for the difference in prices…

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  2. KB says:

    gotta love this :) Most entertainment from age 21 – 40 invovles some sort of price male/female price discrimination. Except for movie theatres where you are charged the same regardless of gender, but will charge different prices for age.

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  3. CF says:

    Quin hit it on the head – they offer topless sunbathing.

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  4. a student of economics says:

    “The service the club offers is the same to men and women…Presumably, women’s price elasticity of demand for the pleasures of the club exceeds that of men, justifying the price differential”

    Dan strikes me as pretty smart guy so maybe he’s writing this tongue in cheek.

    The difference in prices has very little, if anything to do with the differences in “price elasticity of demand” or else they’d just drop the women entirely and admit more men. It has everything to do with the positive externality from maintaining or increasing the ratio of women in the club, which is entirely different thing.

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  5. nancy says:

    wait, women are PAYING $10 bucks to be models and men are paying 50 bucks to go to a clean topless bar?

    I see a disparity and it looks like the women are getting ripped off.

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  6. Alan says:

    “European style bathing”. I believe that’s what American’s call “topless” bathing isn’t it?

    I wonder if the women at the Mandalay Bay realise that the hotel is complicit in allowing men, who are willing to pay, access to a peep show in which they are the main attraction?

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  7. Zara says:

    I don’t know about anybody else, but to me, living in the UK, ‘European style bathing’ just means a cold windy beach with grey skies.

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  8. decklap says:

    This just in… men will pay to look at women’s breasts. Thanks Mr. Hamermesh for your insight.

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