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127
than during the rest of the year, though the costs of providing the services (responsive
primarily to prices of jet fuel) do not change.
Some have claimed that U.S. airlines charge high fares because they are no longer
subject to controls since the Reagan administration deregulated the industry in the 1980s.
Others claim that free market policies have forced airlines to become more competitive and
lower prices. Unstable prices are certainly attributable in part to the recession that began in
the late 1990s and increased terrorist threats s ince September 11, 2001.
Many U.S. nightclubs feature a "ladies' night" in which women are offered discount or
free drinks, or are absolved from payment of cover charges. This differs from conventional
price discrimination in that the primary motive is not, usually, to increase revenue at the
expense of consumer surplus. Rather, establishments benefit by maintaining an equitable
gender balance; if the clientele of an establishment is primarily male ("sausage party") it
will lose popularity with both men and women, and therefore it is better for the
establishment to lower its prices for women if they show less demand.
Financial ai d as offered by U.S. colleges and universities is a form of price
discrimination that is widely accepted, and completely legal.
These institutions often price discriminate by setting their prices well outside the reach
of most families, sometimes as high as $170,000 for four years of education. Middle- and
lower-income students are often afforded discounts and loans to lower these costs to the
institution's estimation of the family's willingness to pay.
Since financial aid is awarded according to parental income, students whose parents are
wealthy but refuse to pay for college are often unable to afford a college education at all.
Little objection is given to this version of price discrimination because, allegedly, the
per annum costs of educating one student exceed even the tuition rate one pays without
financial aid.
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