I have noticed the entire Cape Cod region of MA also seems to shun the free refill pricing method, at least they did when I was there a few years ago. Is it possible their consumers have similar elasticity levels to those in Europe, especially given their high tourist composition? This policy
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
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
Restaurants of what type and what were their corresponding policies? Best Regards, MG Is there any logic to whether restaraunts offer free refills for soda drinks? I've observed one street alone among three restaraunts
Related question: Why no free re-fills in Europe? -- Prof. Bryan Caplan [EMAIL PROTECTED] http://www.gmu.edu/departments/economics/bcaplan "Is there anything more distinctly understood by all men, than what it is to see, to hear, to remember, to judge?
At 21:16 00-07-08, you wrote: Related question: Why no free re-fills in Europe? -- It depends what you re-fill. If you have dinner in a Paris Bistrot roman (a chain of upper middle class fast food) and you take the smoked salmon, they will re-fill you as much as you want. Same with their