Your current web browser is outdated. For best viewing experience, please consider upgrading to the latest version.
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
search DONATE
Close Nav

Finding Your Power in a Higher-Priced World

back to top
commentary

Finding Your Power in a Higher-Priced World

Bloomberg Opinion December 15, 2021
EconomicsFinanceOther

Consumers have a lot more control than the last time the economy was plagued by inflation. On-the-spot comparison shopping is just one way to play defense.

I am fairly compulsive about always having my keys with me. But after a series of mishaps, I got locked out of my apartment last week. It was after midnight so I had to call a 24-hour locksmith and he told me he'd be at my door in about half an hour. I spent those minutes panicking over how much it was going to cost. I felt so vulnerable; I needed this service. It was the only way I could get home. And given my desperation and late hour, he could charge almost any amount. After all, prices are set where supply meets demand. I had a very strong, or what we economists call inelastic, demand to get into my home, and there are a limited supply of 24-hour locksmiths. He had all the power.

Continue reading the entire piece here at Bloomberg Opinion (paywall)

______________________

Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.

Photo by matdesign24/iStock

Saved!
Close