Monday, November 26, 2007

More on Free Wireless

Hope everyone had a Happy Thanksgiving. To pick through some leftovers of what is in my head a couple of thoughts.

One of my readers asked two questions that might be of interest. First how many oysters did my wife and I eat at the Oyster Riot. My guess is about 50 each, somewhere toward the end of the evening we reached diminishing returns.

The same reader would like to know as another blogger pointed out that some hotels charge $10 or more for wireless, while it is free at others. Steve Landsburg at slate provides a great explanation of the economics behind this pricing. Basically it depends on the makeup of your customers. It is best to charge for wireless if you have some that will pay for wireless and some that won’t (like a fancy hotel with business travelers (will) and leisure travels (won’t)). However, if you are a typical road side motel fewer people will pay for it. So it might not be worth setting up the system to charge customers.

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