When theaters charge lower prices for matinee showing, it is not price discrimination, since it is more expensive to operate a theater during the day, as compared to the evening hours.

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Price discrimination involves charging different prices to different groups of consumers for the same product, based on their willingness to pay, not on the cost of providing the service. Charging lower prices for matinee showings is a form of price discrimination, as it targets different consumer groups (e.g., retirees, students) who may have a lower willingness or ability to pay compared to evening audiences, and is not primarily based on the operational costs of the theater.

When Theaters Charge Lower Prices for Matinee Showing, It Is