Whether a market has a single 'no-haggle' price or negotiated prices depends on two possible explanations: either the transaction costs of negotiating individual prices are so high they swamp the profits from discrimination, or competition forces a single price everywhere except markets like houses and cars.
causalpending
Speaker
Russ RobertsEvidence Quote
“why is it that sometimes there is a tea price and sometimes there's not the answer has to be it's something like the transactions cost of negotiating separate prices for each buyer are so big”
Source
Michael Munger on Franchising, Vertical Integration, and the Auto Industry 06/22/2009— EconTalkCreated: 6/17/2026, 10:31:26 AM
My Notes
Loading notes...