What determines the price of wine? Not necessarily taste or quality, according to the Journal of Wine Economics. A summary in The Economist notes: The relationship between the price of a bottle of wine and its taste is weak, according … Read More
psychology
The Importance of Framing
This article from the LA Times discusses the importance of reference points in assessing the “fairness” of prices. The article notes: If you ask college students if the average price of a textbook is more or less that $7,000, they … Read More
Seth Godin: Cheaper is the Last Refuge…
In a recent post, Seth Godin responds to someone seeking help persuading her boss to lower prices. Seth notes …perhaps she ought to consider raising prices and using the extra money to create a remarkable experience… Cheaper is a short … Read More
Toilet Paper for the Rich– You Can Always Make an Everday Item a Luxury Item
If people will pay $4 for coffee, why not $5 for toilet paper? (Actually, I can think of plenty of sensible reasons why not, but what fun would that be?) I think they should introduce another line with silver and … Read More
Everyone Wants Comfort, but Will They Pay for It?
The Middle Seat travel column by Scott McCartney at the Wall Street Journal has been discussing Boeing’s plans to outfit their new 787 in either 8 or 9-across coach seating. Naturally, the 8-across seating gives each passenger more room, while … Read More