August 23, 2005
Professor Larry Neal Mentioned in LTE in Financial Times
August 19, 2005 Friday
London Edition 1, Letters to the Editor:
The British hotel pricing anomaly flies in the face of economic laws
Sir, My friend Larry Neal of the University of Illinois (Economics, Champaign-Urbana) and I have been observing a curiosity of British pricing policy which we term "The British Anomaly".
Under this, when sales fall, prices are raised, in direct contravention to the basic laws of economics. It is a very common phenomenon in the UK.
You gave a perfect example in your report "Tube hit by steep decline in weekend visitors" (August 5). In response to the London bombings it was reported that "Deloitte & Touche, the professional services firm, said hotel occupancy was down 11 per cent in London last week, compared with the same weekend last year, causing operators to raise prices by 3.5 per cent". Perhaps readers can provide other examples?
A. J. H. Latham,
Reynoldston, Swansea SA3 1AF
(University of Wales, Swansea)
Posted by Becky at August 23, 2005 11:02 AM Posted to UIUC Economics News