Posts Tagged ‘elasticity’

  • High Gas Price Control

    The Reason the Price of Gasoline Has That 9/10

    Apr 19, 14 • 364 Views • No Comments

    If you asked me how much I pay for gas, I would say $3.49 a gallon. Actually, though, the sign says $3.499. And that means, because the gas station rounds up, I am paying $3.50.  Doesn’t $3.50 sounds like a lot more? The 9/10 of a cent story begins in...  [read more]

  • Housing bubble and elasticity and factal math

    A New Cause of the Housing Bubble

    Feb 28, 14 • 546 Views • No Comments

    In the 663 page report from the Financial Crisis Inquiry Commission (remember them???), the 2000-2011 real estate boom and bust is blamed on relatively predictable conditions. Just glancing at their chapter titles and conclusions, you can see that they blame...  [read more]

  • Dynamic Pricing for Tickets Displays the Power of Prices

    Big Ten Tickets

    Dec 9, 12 • 282 Views • No Comments

    For $75 you can see all 9 Big Ten Conference basketball games…Maybe. Here’s the story. If you buy a Golden Ticket online from the Minnesota Golden Gophers, you can attend up to 9 Big Ten games but only if Minnesota wins every time you attend. If...  [read more]

  • popcorn...16848_4.1_000004760445XSmall

    Movie Tickets

    Jan 5, 12 • 1345 Views • No Comments

    Should you pay more to see a blockbuster film during the Christmas holidays when movie going peaks? Less for an obscure foreign film? More on Saturday and at 7 pm? Less on Tuesday and 11 am? The issue is variable pricing. In this paper, several researchers...  [read more]

  • Dynamic Pricing for Tickets Displays the Power of Prices

    Broadway and Airlines

    Nov 26, 11 • 283 Views • No Comments

    Have you ever hesitated to book an airline reservation and, within moments, the price changed? Or, could you have known that delaying your purchase of a ticket to God of Carnage in LA last summer would have saved you almost $70? The reason is “dynamic...  [read more]