Latest Articles
Get in Where You Fit in (4/3/2003)
Quoting room rates according to the guest's elasticity of demand improves the bottom line when there is surplus capacity.
Quoting room rates according to the guest's elasticity of demand improves the bottom line when there is surplus capacity.
Mickey Mouse Economics (10/26/2002)
By spreading out large fixed cost over more customers, price discrimination directly increases Disney World's profit.
By spreading out large fixed cost over more customers, price discrimination directly increases Disney World's profit.
Grade A Material (8/1/2002)
In the absence of perfect information, insurers charge premiums according to classes of risks rather than individual risks.
In the absence of perfect information, insurers charge premiums according to classes of risks rather than individual risks.
The Annoying Neighbor (12/21/2001)
Tit-for-tat is one way to force producers of negative externalities to internalize them.
Tit-for-tat is one way to force producers of negative externalities to internalize them.
Why Are the Prices Different? (12/21/2001)
Japanese supermarkets charge higher prices for machine-vended items to customers who value their convenience.
Japanese supermarkets charge higher prices for machine-vended items to customers who value their convenience.
To Stand or Not to Stand? (10/24/2001)
Charging a time fee for using restrooms may reduce congestion by discouraging overuse.
Charging a time fee for using restrooms may reduce congestion by discouraging overuse.
