New printers are NOT charging a high price for refills of ink. (WSJ, March 2021) My question is, "What took so long?" Were consumers unable to look ahead and then reason back?
A blog for graduate business students taking ECON 610 or similar courses at VCU. The opinions here are mine. No one at VCU reviews or approves what I post.
Wednesday, March 24, 2021
Is this the end of Barbie doll pricing for printers?
Look ahead and reason back
Tractor manufacturers are trying to lock farmers into getting repairs from their dealers. (WSJ, March 2021) One question is, "Were the manufacturers hoping to use Barbie doll pricing?"
- Consumers may lose because manufacturers increase the price of the tractor when the link between tractor sales and revenues from repairs decreases.
- Producers may lose because the increase in the price of tractors fails to offset the lose of revenue from repairs.
- The environment may also lose.
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