More Than a Price

by Elaine Schwartz    •    Dec 27, 2009    •    595 Views

Listening to a wonderful Radio Lab (WNYC 10/09/09) podcast on Numbers, I started to think about a comment about what you can learn from a gas pump. $1.40? Maybe a teenager with little to spend. $10.04? Probably a cash payment but the attendant did not turn off the equipment fast enough. $60.00? A person with a credit card and a large gas tank.
Indeed, prices tell a story, provide information, and serve as incentives and disincentives. When prices are set by government, they lose their ability to convey information and affect behavior.
Maybe we can call prices messengers?

Leave a Reply

Your email address will not be published. Required fields are marked *

« »