Why Popcorn Costs So Much at the Movies

Why Popcorn Costs So Much at the Movies

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'Why Popcorn Costs So Much at the Movies, and Other Pricing Puzzles' seeks to unravel an array of pricing puzzles from the one captured in the book s title to why so many prices end with '9' (as in $2.99 or $179) to why ink cartridges can cost as much as printers to why stores use sales, coupons, and rebates. Along the way, economist Richard McKenzie explains how the 9/11 terrorists have, through the effects of their heinous acts on the relative prices of various modes of travel, killed more Americans since 9/11 than they killed that fateful day. Professor McKenzie also explains how well-meaning efforts to spur the use of alternative, supposedly environmentally friendly fuels have caused starvation among millions of people around the world and have given rise to the deforestation of rainforests in Malaysia and Indonesia. How can this be? If you think you already have an answer, read on. The solutions to these and other such pricing puzzles are more sophisticated and surprising than you likely now think.For a long time economists were puzzled by the fact that new cars drop precipitously in value once they are driven off dealer lots. ... the resale price of a car just driven off a dealera#39;s lot can be 20% (or upwards of $10, 000 for some luxury cars) below its purchase price. ... On the other hand, buyers who learn they have lemons will want to lower their car maintenance costs by putting their cars up for resale.

Title:Why Popcorn Costs So Much at the Movies
Author: Richard B. McKenzie
Publisher:Springer Science & Business Media - 2008-04-17

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