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Why Some Passengers Wait for Planes and Why Planes Wait for Some Passengers

airplane
Dec 06 2004

Tyler Cowen offers several explanations for why wait times vary across stores. Some stores put impulse purchase items near the checkout counter, and need long lines to make sales. Some stores have more conflict at checkout than others, rental transactions take longer than cash transactions, and long lines can substitute for raising prices by adding a cost to the consumer (waiting) which substitutes for a cost to the seller (adding staff). The explanation that most interested me in the context of aviation is Long lines may serve the cause of price discrimination. Perhaps the store offers personalized shopper services, free home delivery, or other services at a premium. These ancillary benefits might be more profitable if shopping takes just a bit of time. Low-income demanders won’t mind so much, high-income demanders may be pushed to…

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