The New York Times published a feature in December exposing how hotels and wedding service vendors typically charge more to couples planning wedding festivities than they do to corporations seeking the same facilities and the same services. Is the result of  gauging, market forces, negotiation inexperience by the happy couple, or something else? Is it unethical?

The article seems to conclude that the vendors are simply taking advantage of purchasers who have no sensitivity to price, especially so-called “Bridezillas.” They want what they want for their perfect day, and will pay whatever it will cost to get it. Are the venders being unethical to take advantage of what is an emotional rather than a rational mindset? After considering whether more price transparency in the wedding industry would help (the author thinks not), the piece concludes,

“Strong consumer preferences — about the flower type, bridesmaid dress, cake decorations, music style, whatever — mean less price sensitivity (what economists refer to as greater demand inelasticity). If the cocktail napkins must be blue, the happy couple will be willing to pay more for blue. So if there are enough brides out there with strong and specific preferences, who want their weddings to be the special day they always dreamed of, that’s going to push equilibrium prices higher, no matter how transparently they are displayed. In other words, the Bridezillas keep prices high for the rest of us.” Continue reading →