Do you fancy watching a musical in London? Then, according to a research study at the Universidad Carlos III de Madrid (UC3M) if you want to save money you should buy your airlines long in advance, but postpone the purchase of your theater ticket until the last minute.
Why do airline tickets become more expensive as the travel date approaches whereas theater tickets are sold at half price in Leicester Square on the day of the performance? In their recent article published in the Economic Journal, (“Advance Purchase Discounts versus Clearance Sales"), Professors Marc Möller and Makoto Watanabe from the UC3M Department of Economics have considered the pricing of products that can be purchased in advance, i.e., long before their actual date of consumption. Further examples include seasonal products like the newest skiing equipment or entry slots for marathons.