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June 29, 2008

Amazing Elasticity

Bryan Caplan

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.


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Joe Marier writes:

But what if you can walk to Blockbuster?

Posted July 1, 2008 09:32 AM
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