Originally Posted by
3Cforme
FT really ought to demand proof of successful completion of a college microeconomics course before they let somebody start a thread on pricing.
I remember on the first day of my college intro to econ class, the professor gave a very similar example.
From what I recall, there are definitely short-term vs long-term economic implications. If, at the gate, DL thinks on the margin, they should sell the ticket at a price above the cost of extra food, extra fuel, etc that a D1 seat requires. However, as has been mentioned, they can't keep doing this, or else it would significantly decrease longer-term profits.
Oh, and there's the non-monetary cost of an unhappy non-rev
