Re: Free Re-fills

2000-07-09 Thread Bernard Girard
We have in Europe things that look like free-re-fills. In some French restaurants (but it's probably true in other european countries) you have "buffets" : you choose what you eat on a table and you eat as much as you wish. It's a good deal for the restaurant owner : more food eaten (but not much

Re: Free Re-fills

2000-07-09 Thread Alex Tabarrok
Rather than an elasticity explanation I would suggest a two part tarriff. The initial charge grabs the consumer surplus, MC is close to zero for soft drinks (mostly water) so p=MC is optimal. Fabio's real question, however, is why do some restaurants choose one policy and others another. This