Odd sort of ad-hominem. The pricing structure of airlines certainly wasn't determined by ad execs. What he points out is that it isn't so bad: it does much better at maximizing utility than having all the seats the same and most of them more expensive.
His point was that if the airline pricing system is not so bad (and I'm not agreeing with that), then having it apply to other high fixed cost, low marginal cost things--like his daughter's bus--might also not be so bad.
Of course, the example of his daughter's bus makes me wonder if the whole thing isn't tongue in cheek and I'm not getting it because I'm not British.
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Odd sort of ad-hominem. The pricing structure of airlines certainly wasn't determined by ad execs. What he points out is that it isn't so bad: it does much better at maximizing utility than having all the seats the same and most of them more expensive.
His point was that if the airline pricing system is not so bad (and I'm not agreeing with that), then having it apply to other high fixed cost, low marginal cost things--like his daughter's bus--might also not be so bad.
Of course, the example of his daughter's bus makes me wonder if the whole thing isn't tongue in cheek and I'm not getting it because I'm not British.