Professor Mark J. Perry's Blog for Economics and Finance
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
10 Comments:
Oh,,,, let's see this at the... gas pump, eh?
:-)
This idea should be extended to brothels.
:-)
I predict this business model will end in 3...2...1....
Y'all are so depressing.
What I immediately thought when I read it was, "Does this prove the price point is right?" 60% paying the price leans me to say yes since there is equal over and under. But if more people (say 30% paid more than those paying less 10%) overpaid, than ideas abound.
try putting this in the tenderloin in san francisco.
"90% paid nothing"....
Well as a resident near that particular Panera its location is quite good, it gets all the traffic from the county courts, state courts, county government and state government which is quite a bit of traffic...
I've had the misfortune of being called onto juror pools several times (apparent downside of voting it seems) over the last few years and I've tried that particular Panera's fare just once and it was once to often IMHO...
So I can understand why there are 'suggested' pricing schemes at that particular Panera's...
"I've had the misfortune of being called onto juror pools several times (apparent downside of voting it seems) over the last few years and I've tried that particular Panera's fare just once and it was once to often IMHO..."
IMHO you tried it just the right number of times. You now have valuable knowledge you would not have had otherwise, and armed with that knowledge, you can save yourself an equivalent amount of displeasure in the future. Consider it a sunk cost. :)
"So I can understand why there are 'suggested' pricing schemes at that particular Panera's..."
I assume you had to pay the 'suggested' price before you could make a proper evaluation of your meal and price it accordingly. Too bad.
Actually, even with mediocre food, unless there's a lot of competition, a restaurant with that pricing plan may do well in that type of neighborhood. There's a fairly captive clientel. And, as many who work in that type of environment consider image to be important, peer pressure might prevent people from paying what they think their meal is really worth. No one would want to hear another member of their party yell: "Why, you cheap bastard!"
been to Panera a few times... and never understood why it was considered "special".
Same deal with Starbucks... high-priced grotesquely adulterated ...coffee..
I can nearly buy a whole pound of decent coffee for what they charge for one cup.
but it goes to show you that the "economy" is not just about people's "needs".
Many young people will buy a Starbucks every day for what they could get health care for, eh?
CNN did a cover also
http://www.cnbc.com/id/43047409
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