The following paper has been written by Yoann for his Microeconomics class at Pepperdine. Starting with the statement that movie theaters should use Revenue Management principles to price their tickets, it investigates thoroughly the reasons for doing so, and the related difficulties theaters have to face.
This paper proves that if RM concepts and principles are fairly simple to state and understand, building the prerequisites of a RM system can present a structural difficulty to overcome in some industries.
Further research will be carried out on this matter: our goal is to get research data from AMC (which successfully implemented a variable pricing strategy) and Fandango.com (plateform which allows buying tickets online for most theaters), in order to demonstrate how theaters could implement variable pricing models.
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