1. The latest in resale price maintenance
2. Paul Krugman’s (unfinished) reading list for international
3. New physics blog, via Razib
4. Lengthy article on Bob Barr
5. The cost of getting ready
Assorted links
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The secondary costs and benefits of getting ready for the wingwoman who takes about 20 minutes to get ready:
While waiting for my friends to finish primping, I watch TV, make dumb comments on econoblogs and drink a lot of beer in the process. By the time we actually leave the house, I’ve wasted a couple hours, but also end up saving money because I’m sauced enough that I only have a few when we get where we’re going.
Reading the article about “resale price maintenance” made me queasy. It reminds me in so many ways of the Wickard V. Filburn Supreme Court case, arguably one of the worst and most logic-free decisions they’ve ever made.
My favorite quote from the article: “The high court’s June 2007 decision, written by Justice Anthony Kennedy, declared that minimum-pricing pacts between manufacturers and retailers could benefit customers under certain circumstances. For instance, the pacts could foster competition by giving retailers enough profit to promote a brand or offer better service, Justice Kennedy wrote.”
What kind of twisted logic is that? Consumers benefit from higher prices because retailers can advertise more? In what kind of backwards world am I better off for paying more for a given product? And how did this person get on the bench to rule on this case in the first place?
Another take on getting ready — http://www.youtube.com/watch?v=Y9NgXIkyiwk
John: Setting a minimum price forces retailers to compete on margins other than price – like quality of service. It may be a reaction to the problem of free-riding that you mentioned.
I believe Alchian discussed this, but I can’t remember the article.
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