User:Junqing WU/sandbox

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Tim Wu

In one shop, the cost of the souvenir for customer is P + C If customer want to compare the price with another souvenir shop, the cost of the souvenir will become P + 2C

Tourist trap model happen in tourist trade commonly, tour guide lead passengers to the specific souvenir shop which is far away from other shops when the journey is closed the end. On this situation, passengers difficult to accept the cost of compare souvenirs price with other shop, because the trip is closed the end.

Tourist trap model also suitable in the airport. In the airport, site layout limited the choice options of customers who want to buy the souvenirs, and security checkpoint or departure time increase the cost. Therefore, the cost of search other souvenir shops can dominate the tourist trap model.

China
The Great Wall is appropriate place to establish the Tourist trap. When customers get through each peak, especially the Badaling, It is easy to accept the high price of the souvenirs, because customers try to commemorate they conquer The Great Wall even the price of the souvenirs is absurd.

Jacob, R. & Lau, J. 2002, Chinese fall victim to Hong Kong tourist trap: It's service with a sneer when well-heeled country cousins arrive seeking luxury goods at bargain prices, reports Rahul Jacob: [London edition], London (UK).

Tour Guide and Tourist Trap
Tour guide is easy to dominate the tour route of tourists, especially traveling abroad. Therefore, when sellers cooperate with travel agency, tourists trap will happen. According to the report of Chinese Hong Kong, tour guide lead nine Chinese Sichuan tourists into the Hong Kong tourist trap shop, and let tourists spent 8000 US dollars to buy some worthless things, only due to the travel agency can earn 30% of revenue from the tourist trap shop.