Why are some drinks (alcohol) cheaper to buy at a dance club than at a restaurant?
Many consumers today drink socially. They may choose to drink at a bar, restaurant, or a dance club. Some have realized that it is cheaper to buy some drinks at a dance club than at a restaurant or bar. This example can be explained with the two-part tariff theory. With the two part tariff theory, a firm charges fee for the right to enter the market and then a unit price, (usually cheaper than normal), for a good. Consumers pay a fee to enter a dance club and then is rewarded with a cheaper price for the drinks. Since there is no fee to enter a restaurant or bar, drink prices may higher to cover other costs. In northern Michigan there is a resort community which has recently been built. This community offers many clubs, yet it requires all property owners to join the yacht. My question is why do all property owners have to be members of the yacht club and not the other clubs? This community is located on Lake Michigan and here they constructed a large harbor. In order to pay for this h
