tag:blogger.com,1999:blog-3829599.post8452597367041479575..comments2024-01-28T00:20:40.933-08:00Comments on Agoraphilia: An Economic Puzzle: Fixed Prices with Variable Unit SizesUnknownnoreply@blogger.comBlogger15125tag:blogger.com,1999:blog-3829599.post-88840592281330312862008-06-22T04:30:00.000-07:002008-06-22T04:30:00.000-07:00coffeecoffeeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-10481761506426964422008-06-20T07:01:00.000-07:002008-06-20T07:01:00.000-07:00I thought a little more on this - there's plenty o...I thought a little more on this - there's plenty of things where the price stays fixed, but the variable unit changes - but in the opposite direction of what I was thinking before. At the grocery store, you see plenty of bottles that proclaim, 'Now with 20% more!' The price has remained stable, but the manufacturer increased the amount of the product to compensate for lower production costs. This happens all the time in the semiconductor industry. The price of a processor chip stays relatively fixed, but the speed, memory, and other features must increase to keep the price stable.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-72555490210557494182008-06-18T07:25:00.000-07:002008-06-18T07:25:00.000-07:00I seem to remember Campbell's Soup decreasing the ...I seem to remember Campbell's Soup decreasing the size of their cans (from 12 ounces to 10.5 ???). No verification, but I remember being real angry. Love some chicken noodle.<BR/>There was also a switch to "heat and serve" from condensed, though this also came with change in quality and price.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-43471205894971935952008-06-17T00:59:00.000-07:002008-06-17T00:59:00.000-07:00Funny thing you mentioned ice cream. Five or six y...Funny thing you mentioned ice cream. Five or six years ago, most single-serve yogurt cups were 8oz in size. Now, most of them are 6oz, except the supermarket brands (which mostly remain 8oz). I can't be sure about this either, but I think the price has remained 59c to 79c a cup.<BR/><BR/>With respect to wine: Trader Joe's "Two-Buck Chuck" (aka Charles Shaw) never has any specific formulation. In any given season, the maker just buys up excess grapes. Season-to-season, quality varies (I have experienced this), presumably according to the grape harvest. But the wine has always cost $1.99/bottle (in California) since it was introduced a few years ago.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-16718209750834725242008-06-16T22:43:00.000-07:002008-06-16T22:43:00.000-07:00What ice cream brand is that? Seems like they've ...What ice cream brand is that? Seems like they've been offering pint and 1/2 gallon containers all my life.Glen Whitmanhttps://www.blogger.com/profile/01425907466575991113noreply@blogger.comtag:blogger.com,1999:blog-3829599.post-14106367264851228402008-06-16T22:23:00.000-07:002008-06-16T22:23:00.000-07:00Ice cream containers are getting smaller while the...Ice cream containers are getting smaller while the price remains the same. But I bought smaller bowls and spoons to offset that.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-25012251984600412622008-06-16T13:59:00.000-07:002008-06-16T13:59:00.000-07:00"Chocolate bars are made smaller in steps while re...<I>"Chocolate bars are made smaller in steps while remaining at the same price, then they are made bigger in a jump, with a price increase, and then go back to gradually shrinking. On a long view, they are always about the same size. Or at least thats the way 'brand' chocolate bars work in the UK"</I><BR/><BR/>Assuming that my link was likely broken, this shrinking of size by the manufacturers of single-serving consumer products is to everyones' benefit. Rather than increase prices, the decrement in the unit good size is also the least valuable portion of that size contained in the original product, applying diminishing marginal utility. The tenth bite of a candy bar is far less valuable than the first, whereas an incremental price increase is the most valuable portion of that size contained in the total price.<BR/><BR/>Regards, DonDonLloydhttps://www.blogger.com/profile/17708762125517247796noreply@blogger.comtag:blogger.com,1999:blog-3829599.post-50286687117306905772008-06-16T13:02:00.000-07:002008-06-16T13:02:00.000-07:00There's been some talk lately about the amount of ...There's been some talk lately about the amount of beer being poured is smaller (by one to two ounces) at the local bar, though the price remains the same.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-22860147775222505412008-06-16T12:36:00.000-07:002008-06-16T12:36:00.000-07:00Quote: I had thought the candy bar example came fr...Quote: I had thought the candy bar example came from a time when there were government price controls, but perhaps I'm wrong.<BR/><BR/>Chocolate bars are made smaller in steps while remaining at the same price, then they are made bigger in a jump, with a price increase, and then go back to gradually shrinking. On a long view, they are always about the same size. Or at least thats the way 'brand' chocolate bars work in the UKAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-7744536150790436722008-06-16T08:59:00.000-07:002008-06-16T08:59:00.000-07:00Anon of 3:06 -- Lotto tickets and 99c stores are b...Anon of 3:06 -- Lotto tickets and 99c stores are both good examples, and they seem like they're driven by something other than high transaction costs. <BR/><BR/>I don't buy the gas and wine examples, though. Gas is still priced by the gallon, and customers can choose whether to stop at a number of gallons or a number of dollars. And wine still comes in bottles of about the same size it always did; if customers want to buy lower quality wine to keep the price constant, they most likely have to switch brands to do so.<BR/><BR/>Anon of 8:24 and Don -- I had thought the candy bar example came from a time when there were government price controls, but perhaps I'm wrong. Candy bars now seem about the same size as they were when I was a kid.<BR/><BR/>Alex -- What kind of bread are you buying? Seems like Wonder and Roman Meal have had about the same size loaf all my life. (I wish it were otherwise; as a single guy, I can't make it through a whole loaf before it goes stale. When I lived in NYC, they offered a half-loaf size that doesn't seem to be available in L.A.)Glen Whitmanhttps://www.blogger.com/profile/01425907466575991113noreply@blogger.comtag:blogger.com,1999:blog-3829599.post-44805460254363896552008-06-16T08:31:00.000-07:002008-06-16T08:31:00.000-07:00Actually bread is an example of the opposite. At ...Actually bread is an example of the opposite. At the fancy supermarket where I buy bread the price has stayed the same but the loaf has gotten smaller.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-63888297541585936762008-06-16T06:41:00.000-07:002008-06-16T06:41:00.000-07:00Following up on the candy bar:http://mises.org/Com...Following up on the candy bar:<BR/><BR/>http://mises.org/Community/blogs/donlloyd/archive/2007/10/18/a-candy-bar-inflation-puzzle.aspx<BR/><BR/>Regards, DonDonLloydhttps://www.blogger.com/profile/17708762125517247796noreply@blogger.comtag:blogger.com,1999:blog-3829599.post-21096647594024984702008-06-15T20:24:00.000-07:002008-06-15T20:24:00.000-07:00It must be more costly, in general, for the seller...It must be more costly, in general, for the seller to change unit size rather than increase the price. So why would the seller do it? perhaps to fool the unsuspecting customer. I think I've seen chocolate bars and other packaged food items shrink in size while the price stays the same.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3829599.post-11223060123575057322008-06-15T19:45:00.000-07:002008-06-15T19:45:00.000-07:00I wonder what will happen when inflation renders t...I wonder what will happen when inflation renders the "dollar store" business model infeasible. "The Buck-Fifty Store" doesn't quite have the same ring to it, and being the first store in town to make the switch must be really bad for business.Brandon Berghttps://www.blogger.com/profile/14490308321355825389noreply@blogger.comtag:blogger.com,1999:blog-3829599.post-30693464404944036482008-06-15T15:06:00.000-07:002008-06-15T15:06:00.000-07:00Gambling (lottery tickets, plays on a slot machine...Gambling (lottery tickets, plays on a slot machine) They just change your odds (the expected value of your win) but keep the bet size a nice round number.<BR/><BR/>Some people buy gas (or used to) by going in to the gas station and getting $10 or $20 worth from the pump. The pumps could be set to dispense just a fixed dollar amount and then shut off.<BR/><BR/>Plenty of people buy wine by the price of the bottle, which presumably means the quality of a $10 bottle will vary.<BR/><BR/>Everything in a 99c or dollar store.Anonymousnoreply@blogger.com