Monday, 3 November 2008

Placing a value on an experience

In my previous post I referred to the IFORS Newsletter and the account of the IFORS conference in Sandton, South Africa. Among the pictures, there is one of several people stroking a cheetah in a wildlife rescue centre, with the note that there was a fixed charge per photograph. The four people shared the expense. This raises the question -- which is OR related -- of what would be a fair price for that "experience". Someone has had to make the decision and fix a price, presumably to try and maximise the revenue. Costs must be more or less fixed, and extra stroking won't wear out the cheetah. So someone judges what the market will bear. How?
It contrasts with a visit that I paid to a similar rescue centre, where stroking selected animals was free as part of the overall "experience". Another model of costing?

No comments: