Tuesday, March 03, 2015

Boomers Beware: Pay More for Your Dating Service!

In a classic case of price discrimination, the dating service Tinder will charge those under the age of thirty $9.99 per month and those over the hill of thirty will pay $19.99.

Is marginal cost higher for those over 30?  Or is it that demand is more inelastic for the old-timers?  Tinder hints at what they think:

Tinder says it spent several months researching different price points around the world before it introduced the service. "Lots of products offer differentiated price tiers by age, like Spotify does for students, for example," Rosette Pambakian, a spokeswoman for Tinder, wrote in an e-mail. "Tinder is no different; during our testing we’ve learned, not surprisingly, that younger users are just as excited about Tinder Plus, but are more budget constrained, and need a lower price to pull the trigger."
Source:  http://www.bloomberg.com/news/articles/2015-03-03/how-tinder-gets-away-with-charging-people-over-30-twice-as-much

Excellent.  Next time I teach price discrimination I have a new example.

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