REC 475 Lecture Notes - Lecture 7: Zumba, Induced Demand, Vise
Document Summary
Purpose of pricing: to recover costs, to create new resources (aka profit) Done in the private sector: to establish value. Sometimes put prices on things so people will think it is valuable: to influence behavior. Ex: early registration fee if you sign up before nov. 10th you pay. but if you sign up afterwards it will be . This is done to influence people"s behaviors of when they sign up: to promote efficiency. Have to adjust prices throughout the year(s: to promote equity. Programs price based on the person"s income so the more one person makes the more they pay and vise versa. Appropriateness and feasibility: public service programs = free. Participants do not pay to participate: merit service = mix. Some of the cost is paid by the government/tax while some of the cost is a fee that the participant pays: private service = pay for all.
