An Economics of Polarization

This post is a response to yesterday's discussion in Davidson Now’s pop-up MOOC,  “Engagement in a Time of Polarization”.   The key provocation for the discussion was Chris Gilliard's great essay Power, Polarization, and Tech.  The video of the hangout discussion is embedded at the end of this post for you. In his discussion of … Continue reading An Economics of Polarization

A thought on Price Discrimination and Wal-Mart

Just finished this previous post on price discrimination, and it triggered a thought.  Economists spend a  lot of time (particularly in a principles course) discussing market structures like monopoly.  We don't spend enough on it's reverse equivalent, monopsony.    In monopsony, there's just one buyer, often inelastic supply, and barriers to entry of new buyers.  In … Continue reading A thought on Price Discrimination and Wal-Mart

Price Discrimination & Big “Black Friday” Sales

Arnold Kling explains partly why stores offer Black Friday (day after Thanksgiving) sales: price discrimination (see below the  fold).  Price discrimination is the practice of charging two (or more) different groups of buyers a different price for the same thing.  The idea is to charge a high price to people willing to pay a higher … Continue reading Price Discrimination & Big “Black Friday” Sales