Macroeconomics 9th Edition by David Colander

Exercise 53

Airlines and hotels have many frequent flyer and frequent visitor programs in which individuals who fly the airline or stay at the hotel receive bonuses that are the equivalent to discounts.
a. Give two reasons why these companies have such programs rather than simply offering lower prices.
b. Can you give other examples of such programs
c. What is a likely reason why firms whose employees receive these benefits do not require their employees to give the benefits to the firm LO1