During my Fundamentals of Microeconomics class I routinely used alcohol for almost every section of my lessons. Why? College students understand alcohol much better than they do wheat and butter. Almost every chapter can be adapted to include some reference to alcohol, its production, or its consumption.
A fellow Twitter economist (@Patelnomics) posted a nice graphic of complements. I'm not sure where the source originated, but I found it from his, so I'll give him proper credit. Without a doubt, this is a great example of stores bundling complementary goods to reduce the search costs of buyers.
What was your favorite example of complements as an economics student? What did your professors use that you found boring?
Focused on exposing the underlying economics behind humans' favorite activities. Why sports teams shouldn't be punting on fourth down and why Walmart dumps their Halloween candy the day after Halloween. Our lives are surrounded by economics, but most people don't take the time to stop and think about what's going on. This site is aimed at pointing out economics where you may have never seen it before.
Showing posts with label transaction costs. Show all posts
Showing posts with label transaction costs. Show all posts
Tuesday, January 15, 2013
Rum and Coke: A Case of Complements
Labels:
bundling,
Complements,
demand,
Teaching,
transaction costs
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