Saturday, September 09, 2006

Out of Context Quote, Small Sample Size

by Ken Houghton

"Rapid price changes lead to economic inefficiency." - Samuelson and Nordhaus, 16th ed., p. 373

TOS currently: $139.99 (though I believe it's $44.99 per season in the stores).

Original pricing from late 2004:

Season 1: $106.99
Season 2: $106.99
Season 3: $ 99.99

Memory serving, the set was offered last Xmas for around $270. BestBuy now lists it for $179.99.

Does this count as deflation?

By the way, the best Star Trek series is coming out for Thanksgiving.
Does this count as deflation?

Price discrimination is the best answer, but the mechanism would show up as a CPI price decline were TOS a sample good.

Totally out of context, of course, but price discrimination is usually considered efficiency-increasing (as long as you don't mind the seller capturing the economic surplus).
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