Economics in action

Millions of shoppers will pay inflated prices for Christmas presents this year because of where they live.

Major stores are operating a postcode lottery, with prices for the same item twice as high in some branches.

Price discrimination, don\’tcha love it?

5 comments on “Economics in action

  1. I have no strong political leanings but just like when you are a kid and keep picking at scabs I find myself regularly drawn to Richard Murphy’s blog…I’m not sure why because I find most of the views extreme, overplayed or even nothing more then self promotion.

    As Bill Hicks once said if he had accepted an endorsement he would have sold out and he would have no artistic merit anymore, he felt no one could take him seriously if he did that.

    I think it was Tesco who were recently caught donating funds to a University which then backed their views on supermarkets etc.

    Similarly, Richard Murphy is financially backed by the TUC and a few other organisations whose views he supports and his research backs. When he talks about issues connected to those organisations and/ or their views I cannot take him seriously. He has a vested interest to say that. If on the other hand, he was truly independent and not in the pay of those he supports he would have a lot more credibility in my books.

  2. It is surely an example of markets working that prices for certain things are more or less expensive depending on one’s location; this is the price mechanism encouraging the most efficient allocation of resources that have alternative resources.

  3. “The survey also found that stores are selective about special offers.”

    Surely this explains much of the apparent differences. Each shop on each site is responding to their own location’s tastes, eg the people of London and Newcastle buy Gok Wan’s book in big enough numbers that WH Smiths there aren’t sat on a pile they need to shift. Where the book isn’t selling as well it gets discounted.

    You could phrase it entirely the reverse – Millions of shoppers will pay reduced prices for Christmas presents this year because of where they live.

    Major stores are operating a postcode lottery, with prices for the same item half as much in some branches.

  4. is not this the market at work?
    them with lots of money can pay and the rest dont. And very likely the shop assistants at the posh shops are better looking.

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