> > "Providing this free service [public restroom] for
> > their customers only serves to reduce businesses'
> > profits, or else the cost is passed on
> > indiscriminately to all their customers."
> 
> Serious question: If the firm is already charging a
> profit maximizing price, how can it pass the cost of
> bathroom maintenance to customers as a whole?

No doubt they can't, except for the (small) marginal cost of having
another person use the restroom (averaged over all customers, some of
whom don't).

I think we are leaving something out here.  Many people, or at least
many Americans, seem highly offended at the notion of having to pay to
use a toilet.  Hence, the existence of groups like the "Committee to
Eliminate Pay Toilets In America."  (Or as John Perich put it,
"Committee to Eliminate Pay Toilets In Communities"  (C.E.P.T.I.C.).
I love it!)

This is another way of saying such people have a strong disutility
associated with paying for the toilet, to the point that they are
willing to pay a little extra for the goods sold at the
establishment.  It's quite possible that if, say, McDonald's started
charging for toilets, people would be willing to pay higher prices for
food at Burger King to avoid the indignity (disutility) of having to
pay for the toilet.  If people are suffifiently offended, they might
even avoid patronizing McDonald's on occasions when they only want
food and don't need to use the toilet (i.e., boycott the company that
offends them).

This phenomenon is not particular to toilets -- people will sometimes
pay more for a product made in a country they like (or not made in a
country they don't like) or avoid patronising a company which makes
political contributions they disagree with or does something they
think is immoral but which is unrelated to the transactions at hand.

Examples:  "Buy American" campaigns in the USA; the boycott of
Domino's pizza by feminists (the owner is pro-life); the boycott of
California table grapes by various groups for 20+ years.  The list
goes on and on.

There has been some work on whether or not "boycotts" actually change
corporate behavior; the absense of pay toilets might be an example
where the market is telling firms to abide by the sensibilities of the
public.  The presence of pay toilets in other countries may just
indicate that other "publics" have other sensibilities.


--Robert Book
  [EMAIL PROTECTED]



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