The Undercover Economist explains how pricing is also a form of signaling – it’s a back-and-forth dialogue between the consumer and the vendor.
The scheduling of television shows may be a form of pricing. When a network puts a program in prime-time, it’s telling the audience that this program is of the highest quality. The audience only has so many hours to spend with prime being its most valuable hours.
Prime-time is priced the highest for all, all the way around.