Demand Elasticity
Earlier, with respect to the golf fiasco, I mentioned the concept of demand elasticity. This is a basic premise of economics, not some pie in the sky, pointy headed academic concept. Another way of framing the issue is to point out the obvious fact that the city staff had better understand who their customers are and what motivates them before even considering a fee increase. In fact, in some demand circumstances, we can increase our total revenue by reducing fees.
We have a City Manager who makes close to, if not more than, $100,000.00/year when considering salary and benefits. He is a professional, and has the training and education needed to perform his job. Should his analysis of the golf fee issue not include a very basic economic precept?
1 comment:
Good grief -- even me, with my so-so grades in grad school, could probably do the analysis! As the saying goes: it ain't rocket science. Heck, couldn't they get some UGF grad students to tackle it as a class project? Students get credit and "real-world" experience, and the City gets free labor -- win/win!
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