Interesting. I was thinking how much JC Penney fe...

2012-02-06T21:23:09.125-06:00

Interesting. I was thinking how much JC Penney felt like Kmart with its new pricing scheme -- I thought they already had "everyday low prices" here.

Regarding carrying calculators, that would be a good idea, but I think most people just show up to the cash register waiting to be surprised!

With tipping at a restaurant, heuristics are usually pretty good to get an "appropriate" tip. Personally, I take the first digit and multiply by two, then add whatever I need to add to make it an even dollar amount... e.g., if the bill is $13.90, I tip $2 + 10 cents to make it even... with a uniform distribution over prices, this will average to a little over 15 percent. Others just use a tipping app.

In Australia Kmart has just switched to an "e...

2012-02-06T08:52:01.190-06:00

In Australia Kmart has just switched to an "everyday low prices" strategy. The argument went that people have become jaded about "Sales". Also shopping in your country sounds like really hard work, sales taxes, tipping, you practically need to carry around a calculator.

Comments on This Young Economist: Simple Pricing versus Price Discrimination

Interesting. I was thinking how much JC Penney fe...

In Australia Kmart has just switched to an "e...