DailyDirt: Pricing Ain't Easy

from the urls-we-dig-up dept

Sometimes the prices of products are mysterious -- or just don't make much sense. Why is gasoline sold per gallon to nine-tenths of a cent? How can rare artwork really be worth millions of dollars? Sometimes, pricing puzzles can stump economists, but more often than not, there's a well-known economic explanation that's just not very intuitive. The invisible hand works in strange ways, and here are a few examples. If you'd like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) Techdirt post.

Filed Under: college, economics, price discrimination, pricing, shrouding, tuition
Companies: apple, jcpenny, orbitz


Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. identicon
    Anonymous Coward, 28 Jun 2012 @ 11:50am

    Gasoline Pricing

    Way back when, 100yrs ago gasoline was so cheap that pricing it at $0.06 or $0.07 was not deemed appropriate. So the powers that be (gas companies) came up with the 9/10 scheme as a way to encourage everyone to pay more for what they were getting or were getting raped for. Everyone knew it was 6.9 cents but that's less then 7 cents per gallon.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Insider Shop - Show Your Support!

Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.