Posts Tagged ‘competitive market structure’

  • Gasoline prices add 9/10 at the margin

    Higher Gas Prices

    Jun 5, 11 • 274 Views • Behavioral Economics, Businesses, Demand, Supply, and Markets, Thinking EconomicallyNo Comments

    How have we responded to higher gas prices? According to a recent study, our first response is to buy a lower grade of gasoline. Drivers, used to premium, opted for regular gasoline instead. However, because we have different “budget baskets,” we

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    Pricing Airline Tickets

    Aug 27, 10 • 181 Views • Businesses, Demand, Supply, and Markets, Economic HistoryNo Comments

    During the 1970s, a ticket to fly between New York and Washington, D.C. cost $50 whereas one between Los Angeles and San Francisco-almost twice the distance-cost only $40.  Why? Before deregulation in 1978, the interstate airline industry was

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    Starbucks or McDonald’s?

    Jun 10, 10 • 1482 Views • Behavioral Economics, BusinessesNo Comments

    A recent Pew Research Center survey asked 2260 adults whether they would, “prefer to live in a place with more McDonald’s or more Starbucks.” 43% said McDonald’s; 35% said Starbucks; 22% had no preference. According to the study, a key

  • Marijuana legalization is about demand, supply, market structure and cost benefit analysis.

    A Demand and Supply Lesson

    May 17, 10 • 152 Views • Businesses, Demand, Supply, and MarketsNo Comments

    A recent NPR report on the changing status of marijuana in California is also a supply and demand story. The story begins in 1983 when the Reagan administration sought to decimate pot production in California. As a result, supply would have decreased because

  • Blanket Competition

    Feb 12, 10 • 198 Views • Thinking EconomicallyNo Comments

    Hearing that American Airlines was charging eight dollars for a blanket and pillow brought back memories of airline deregulation, Eastern Airlines, and People Express. Does anyone remember the Eastern Shuttle? With a government given monopoly on flights