Why Costs So Much at the Movies: Other Pricing Puzzles

Richard B. McKenzie, "WhyCosts So Much at the Movies: And Other Pricing Puzzles"
ISBN: 0387769994 | 2008 | EPUB

WhyCosts So Much at the Movies, And Other Pricing Puzzles unravels the pricing mysteries we encounter every day.

Have you ever wondered why all movies, whether blockbusters or duds, have the same ticket prices? Why sometimes there are free lunches? Why so many prices end with "9"? Why ink cartridges can cost as much as printers? Why merchants offer sales, coupons, and rebates? Why long lines are good for shoppers? Why men earn more than women, around the globe ΓÇô and why they always will?

Richard McKenzie goes on to show how the 9/11 terrorists still kill Americans every day, because their attack distorted the perceived risks and relative prices of air vs. automobile travel, and jacked up both security costs and flight delays. Professor McKenzie also explores the unintended consequences of well-meaning efforts to spur the use of environmentally friendly fuels: starvation among millions of people around the world, and the destruction of rainforests in Malaysia and Indonesia.