Wednesday, July 26, 2006

Sacando el jugo

Two economics professors, David Laibson at Harvard and Xavier Gabaix at MIT have revealed how firms help 'sophisticated consumers' take advantage of the less sophisticated ones by offering cheap basic products with lots of shrouded extra charges. So for example (perhaps a rather bad example in this article), you can buy an HP printer and then amaze yourself at the savings you can make by not buying any expensive ink cartridges.

No comments: