system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why do movie theaters charge the same price for all movies? Wouldn't it be a better business model to vary the price based on demand?

For example, a movie can have a rating based on hype, time since release, projected ticket sales, etc. Like Tier A, tier B, tier C, etc.

Tier A (ex. Dark Night, LOTR midnight release) would cost the maximum at 10$, Tier B (Kids movie, lots of projected sales but not as much hype) would be 7$ and Tier F would be a crappy horror movie parody with a 2/10 rating for like 2$.

It would encourage people to watch a wider variety of movies and would boost sales for the movie theater in question. So why isn't this done already?
gpt
There are studies on this by behavioral economists, apparently any indication that a company is responding to supply and demand makes the customer feel that the firm is acting unfairly, and there is nothing that irks a normal person more than unfairness.  Even those who might want to go see Jack & Jill for $10 when its $15 for The Hobbit, would rather go to a place where its $14 for all movies, because they won't feel ripped off, even if they actually are being ripped off.

More than that, if we have these two competing theaters, those who would ignore the 'unfairness' would simply only watch cheap movies at the variable priced theater and the relatively expensive ones at the flat priced one, i.e. they'll game the system.

You can read Kahneman and Thaler, 1986 if you want more info on the concept of perceived fairness.