Fred Foldvary:
If the perception is that it is of better quality, then it is a different
product, and the demand curve, which is for just one product, does not
slope up.
Couldn't these two be disentangled? It seems to me that, OK, there are
various reasons why, if the market price rises,
Bryan Caplan wrote:
People talk a lot about various irrationalities
that they might fall into and ways they try to compensate for that.
People talk about realizing that each person tends to think highly of
him/herself, and trying to compensate for that.
People "talk a lot" about this?!
So, are professors really underpaid?
In general I think that when one hears complaints about people being
underpaid it is because their earnings are low compared to what other
people with similar credentials are being paid. In my experience most people
don't think in terms of markets setting
A. Woolf wrote:
This reminds me of a paper I read as an undergrad in micro theory. I think it was by
Harvey Liebenstein and titled Bandwagon, Snob, and Veblen Effects. I don't remember
the journal, but it was probably from the 1960s
or early 1970s.
_
In response:
The Role of Price Endings: Why Stores May Sell More at $49 than at $44
This joint Chicago/MIT study, utilizing a large catalog field test,
found that increasing the price of an item from $44 to $49 may actually
increase demand of that item (quantity demanded for the anal-retentive
on the
