Originally Posted by
mbstone
Your philosophy only makes sense if one pretends that all parties have equal bargaining power.
In most retail transactions, the consumer actually has nearly all the leverage. To use an example cited in this thread, how many places are there to buy a mattress??
Another example is in "resort fees." Harrah's group, which runs several hotels on the Las Vegas Strip, recently started advertising "no resort fees." This obviously strikes a nerve with consumers, so it may be a smart marketing ploy. (Or maybe they just jack up the base rates on their properties, but at least they offer a transparency that is certainly attractive to some consumers.) The same hyper-competition characterizes most hotel markets, I think.