Economists Do It With Models

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Entries Tagged as 'Buyer Beware'

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On The Increasingly Unfortunate Economics Of Peanut Allergies…

August 24th, 2016 · 5 Comments
Buyer Beware · Econ 101 · Markets · Policy

So here’s a decent and concise overview of the latest issue to be taking over the internet: Have a peanut allergy? Chance are you’re about to spend a lot more on EpiPens by Emma Hinchliffe Over the past few weeks, EpiPens have slowly overtaken the news. So what is going on with them exactly? Source: […]

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Tags: Buyer Beware · Econ 101 · Markets · Policy

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Economists Can Explain That! Black Friday Edition…

December 8th, 2015 · 1 Comment
Buyer Beware · Game Theory

Well color me not surprised… http://economistsdoitwithmodels.tumblr.com/post/134349274825/retailers-that-forced-employees-to-work Did anyone really think that stores being open on Thanksgiving was actually going to substantially increase how much consumers buy rather than just change the timing of purchases? I like an intoxicated post-turkey Target fest as much as the next person, but this just seems largely implausible, if for […]

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Tags: Buyer Beware · Game Theory

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Today In Stupid Consumer Tricks, Transaction Utility Edition…

November 11th, 2015 · No Comments
Behavioral Econ · Buyer Beware

So remember that time when JCPenney tried to stop BSing its customers with artificially high prices and constant sales? In case you forgot, it didn’t go so well. Now we have another attempt that appears to be about as successful: http://economistsdoitwithmodels.tumblr.com/post/132958471370/jos-a-bank-tries-and-fails-to-wean-customers-off See, it’s funny because if you ask consumers what they want, they for the […]

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Tags: Behavioral Econ · Buyer Beware

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When Transaction Utility Goes Awry, Starbucks Edition…

May 29th, 2014 · 5 Comments
Behavioral Econ · Buyer Beware

Traditional economic models assume that the utility, or happiness, one gets from consuming an item depends only on how fundamentally useful the item is to the consumer. Under this model, an item’s utility must be independent from the price that the consumer paid for the item, since it’s hard to envision a scenario where the […]

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Tags: Behavioral Econ · Buyer Beware

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On Economists Giving Thanks, And The Avoidance Of Arms Races…

November 28th, 2013 · 3 Comments
Behavioral Econ · Buyer Beware · Game Theory · Policy

First off, HAPPY THANKSGIVING! I am very thankful that you all read my online ramblings 🙂 Once you get drowsy from eating too much Thanksgiving dinner (and no, it’s not the turkey, that’s mostly an urban legend, unless of course you ate the entire turkey), you should feast on what Dan Ariely has to say […]

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Tags: Behavioral Econ · Buyer Beware · Game Theory · Policy

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Fun With Positional Goods, Coach Edition…

October 23rd, 2013 · 2 Comments
Buyer Beware · Markets

We talk about a lot of different types of goods in economics- normal goods, inferior goods, Giffen goods, Veblen goods, etc. So what is a positional good? I will let Sheldon from the Big Bang Theory explain: Raj: Dude, I’m glad you finally got a girlfriend, but do you have to do all that lovey-dovey […]

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Tags: Buyer Beware · Markets