Here’s another margin of gasoline price-elasticity to add to Greg Mankiw’s list: Netflix now advertises “Save Gas. Let us deliver your movies.”
P.S. The fact that these margins are hard to foresee is another reason why we probably tend to underestimate elasticity.
READER COMMENTS
Joe Marier
Jul 1 2008 at 9:32am
But what if you can walk to Blockbuster?
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