ajaz_eco_204_2012_2013_chapter_16_Market_Power

Before software stores would send employees to their

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Unformatted text preview: t . Hugh Lee, a 32-year-old from Seattle, said he extensively researches products and prices before pulling the trigger on a purchase. And even after buying something online, he monitors the price and asks for a price adjustment if it is lowered. "It's a lot of extra work," he said. 90 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. So far, shoppers are winning the price game about as often as they lose —with about half of price changes going down, and half going upward, according to Decide.com, which tracks prices of products over time to determine the best time to buy them. The price changes can be dramatic. Last month, retailers on Amazon.com changed prices on a Samsung 43 -inch plasma television four times over the course of a day, between $398 and $424, according to Decide.com. Around midday, Best Buy boosted the price to $500 from $400 before dropping it back down,...
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