Sunday, April 13, 2008

Price Discrimination for Eyeglasses

A firm engaged in price discrimination faces two practical problems. The first is the problem of distinguishing customers who will buy the good at a high price from those who will not. One solution is said to be used by optometrists. When the customer asks how much a new pair of glasses will cost, the optometrist replies, "Forty dollars." If the customer does not flinch, the doctor adds "for the lenses." If the customer still does not flinch, he adds, "each."

~David Friedman's Price Theory textbook (copyright 1990)


At 4/14/2008 9:40 AM, Anonymous Anonymous said...

$40.00 for a pair of eyeglasses?

In Canada, I pay $200 plus for glasses while my husband's are over $400 (the lens alone are more than $200).

Just a price update.

At 4/14/2008 10:50 AM, Anonymous Anonymous said...

Check out this blog about online glasses and how cheap they are:

At 4/14/2008 1:25 PM, Blogger juandos said...

"When the customer asks how much a new pair of glasses..."

Caveat emptor


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