I was just wondering why movie prices are the same across the board, and Joel has a compelling answer: The answer is that pricing sends a signal. People have come to believe that “you get what you pay for.” If you lowered the price of a movie, people would immediately infer from the low price that it’s a crappy movie and they wouldn’t go see it. Wow. Yes!

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I’m much happier getting those free movie screenings that promoters are offering, and it seems more frequently than before. Why pay when you can see the same thing on the big screen for free?