“Why some buyers pay more than others.” Robert Frank begins the so-named chapter of The Economic Naturalist with this statement: The law of one price applies most forcefully in perfectly competitive markets—roughly speaking, markets like those for salt or gold in which numerous suppliers sell highly standardized products. Frank goes on to probe the paradoxical-seeming … Continue reading The Law of One Product: Robert Frank, Tesla, and Hurdle Pricing
Robert Frank
A Black Friday question for The Economic Natualist
In honor of Black Friday, I have a question for the ‘Economic Naturalist’. My wife and I both received Thanksgiving sale catalogues from a clothing chain retailer. A sticker on the front of my wife’s catalogue offered 40% off a qualifying purchase; the sticker on the front of mine offered 50% off. Why would a … Continue reading A Black Friday question for The Economic Natualist
winter tomato 