December 2, 2006

What I Learned at the Tower Records Going Out of Business Sale, by Bryan Caplan

Big finding as the Titanic goes down: The greater the demand for a CD at its regular price, the greater the elasticity of demand for that CD. When everything is 50% off, CDs that normally sell 1 per week may sell 3 per week. But CDs that normally sell 100 per week may sell 1000 per week. This rule seems …

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