Analysis of Harford Paper Organization

Hartford also stresses the importance of location, stating that location can make a difference in a business's success, or the success of a product in an individual store. A location that is more convenient and isolated from comparable products that cost less will be frequented more often and thus, purchased from more often. The more price insensitive people will stop here, not searching the store for a cheaper option, just stopping for the conveniently placed item. Whenever I visit a grocery store, the prepared food items are always in the same place, right when you walk in. Although you may not have to walk through the food, you always at least walk by it, smelling the ready food, seeing the array of food that requires little to no effort to consume. On the other hand, the ingredients necessary to make a dish are located throughout the store, depending on the dish, requiring you to walk through the entire store in order to get necessary ingredients. More price sensitive people tend to overlook convenience when purchasing a product and try to always find the cheapest option.

In this paragraph I am using the strategy of repeating key words and phrases in order to keep the paragraph on topic. This paragraph is explaining how location has an influence on the success of a product. By repeating terms that have to do with location the paragraph seems cohesive.

Additionally, I used a few transitions in order to create cohesion. I used these transitions to indicate a relationship between location and purchasing levels, as well as two transitions to contrast different types of people and different food locations. This could be improved in the paragraph to create smoother sentence to sentence transitions and reduce the choppiness of the paragraph.

In this paragraph I also use the strategy of presenting advantages and disadvantages. I do this by presenting pros and cons of being price sensitive and insensitive. This paragraph is to describe the benefits of location and how it helps in order to sell products, so by presenting what each location offers it allows the readers to weigh the pros and cons of each option. By extent this also uses the problem/solution strategy by providing two options for different types of situations; one option if you are price sensitive and one if you are price insensitive. Additionally this allows for classification or division as well as compare/contrast. I am comparing and contrasting the two different types of locations. To improve this the pros and cons could be more clearly defined.

Summary: The Believing Game by Peter Elbow

     In his essay entitled The Believing Game: Methodological Believing, author Peter Elbow discusses the power of the tools called, "the doubting game," and , "the believing game." Elbow explains that because they are only tools, they will not make a decision for us, only aid in our decision making process. Elbow defines the doubting game as being as skeptical and analytical as possible in order to discover flaws in reasoning, often seen as synonymous with critical thinking. The believing game on the other hand, is trying to accept and believe new ideas that are possibly not appealing in order to scrutinize them. Elbow goes on to discuss critical thinking and how it has a monopoly in the world of the doubting game and bow the doubting game has a monopoly in people's reasoning. Next, Elbow discusses how believing is what comes first, what comes naturally, and is present until someone is burnt enough and start doubting. The goal of the doubting game is not to reject everything, but as Descartes believed, to doubt everything to find something that survived this doubting; this is also called methodological doubting. This is how scientists test hypotheses, they cannot prove them to be true, they just test it until they reject it and if they fail to reject it then, then they trust it until they can disprove it. Elbow goes on to explain that methodological believing allows us to find flaws in our system by trying to believe another's, it allows us to weigh options we are presented with, and allows us to listen and observe. He also discusses how it helps with reading emersion,  discussions, and writing persuasively, pointing out that collaboration works best with the believing game. Elbow concludes by acknowledging that both the believing game and the doubting game are necessary tools in our lives.

Terms and Definitions - Chapter 2 - Hartford

Terms and Definitions of Harford Chapter 2

Term	Price Sensitive & Insensitive	Unique Target Strategy	Group Target Strategy	Self-incrimination Strategy	Leaks
Definition	Price Sensitive-being aware of prices and want to get the best value for their money and their needs. Price Insensitive-being in a state of not caring about the price that is being paid for something	Evaluate each customer as an individual and charge based on amount willing to pay	Evaluate how much groups are willing to pay based on things such as expected employment status based on age	Getting customers to give themselves away as not caring about the price	When the system is cheated by finding a way around paying the price that a retailer is charging
Example from Chapter	Price sensitive people who shop for items at supermarkets only when they are on sale or there is a coupon for them. Price insensitive people who just buy whatever coffee they see or want, regardless of prices.	Car salesman, realtors, discount cards	Charging child, adult, and elderly admission fees, the elderly and child prices are lower because they are less likely to be employed	Charging a lot for popcorn at movies because people do not want to appear stingy on a date or at a social gathering, so they will pay more for the product	Bringing your own popcorn from home to the movies, rather than paying the outrageous price there.
Your Own Example?	Price sensitive, I compare unit prices of various brands of products to find the cheapest product and size of product by unit price. Price insensitive, when I really need something, but cannot drive to the store, so I just go buy whatever they have at Macs, regardless of price	Going to the market the price changes based on how you are dressed, where you are from, whether or not you make confirmation/seem to be in a rush.	I would get into museums for free in France because I was a student, who are not expected to be making much (if any) money.	The bookstore prices are expensive at IC because everyone wants to have some sort of clothing that represents their school, but don't want to be the ones only with a cheap t-shirt, so they are willing to pay more, especially when shopping in groups.	When I go ice skating I bring my own skates rather than pay to rent the rink skates.

 back of the store - $2.47 6oz -0.41/oz
     at the register - $1.09 2oz. - 0.55/oz
   right when you walk into the store - $2.49 8 oz - 0.31/oz

 after cash register - $0.89 4.2 oz - 0.21/oz

   

The Undercover Economy: Chapter 2 - Summary & Response

In Chapter Two, "What Supermarkets Don't Want You to Know of his book, The Undercover Economist, Tim Hartford explains why stores can get away with charging you what they do and how they go about doing this. He begins this chapter by reiterating that scarcity power does not always equal the ability to charge more; instead there must be a reason for people to want to pay more. Hartford gives the example of the Fair Trade coffee, which made people feel like they were helping other people, so they were willing to pay the extra ten cents or so. He goes on to talk about 'price targeting' where companies figure out the most a customer is willing to pay for a product and charge that. The first way to do this is what Hartford calls 'first degree price discrimination' or the 'unique target' strategy, where each customer is individually evaluated and charged based on amount willing to pay. Examples of this include realtors, car salesmen, and discount cards. The next strategy Hartford describes is called 'Group Target Strategy' which is when certain groups who generally can pay more, are charged more. An example of this would be charging a lower price for the elderly or children and a higher price for adults, who are more likely to be employed. Third, Hartford explains the third method, which is 'self-incrimination' where you get customers to give themselves away as not caring about the price.Hartford gives the examples of popcorn at a movie theater and wine at a restaurant here because if you are on a date, you do not want to seem too stingy so you will pay for the expensive things. Hartford goes on to discuss stores' strategies for making people pay more including not having cheaper options available or obviously presented, keeping similar products of varying prices away from each other, and having a higher 'basic' option. Supermarkets will also have spontaneous sales so that people cannot fully take advantage of the sales because they will not be able to plan for them. Finally, Hartford defines and explains the terms inefficient and efficient. Inefficient situations are when a change can be made to one or more person, leaving them better off, and no on is worse off. On the other hand, an efficient situation is one where a change is made where someone is left better off, but at someone else's expense.

People do not only pay high prices because of supply and demand, but also because of reasons such as feeling like they are making a difference by paying more. This is applicable to things such as fair trade coffee, where you feel like you are contributing to a cause. Sometimes people pay more money because they can and they want the best product, which they rate by price and possibly quality. I have been in athletic stores, especially during October, where everything that is being sold is also being sold in pink for breast cancer awareness month. While some of these products are the same price as their alternate color counterparts, many are more expensive when they are pink. Many of these products boast that they will put all of the proceeds towards breast cancer research or something to that effect, but there are some pink products that are more expensive simply in order to "show your support." Hartford describes three methods through which retailers determine if a customer is price sensitive or not. The first method is  'first degree price discrimination' or the 'unique target' strategy, where each customer is individually evaluated and charged based on amount they are perceived as being willing to pay. For example,  realtors, car salesmen, and discount cards are all guilty of doing this. Another strategy Hartford describes is called 'Group Target Strategy' which is when certain groups who generally can pay more because generally they are working, are charged more. An example of this would be charging a lower price for the elderly or children and a higher price for adults, who are more likely to be employed. Third, Hartford explains the method, 'self-incrimination' where you get customers to give themselves away as not caring about the price.Hartford gives the examples of popcorn at a movie theater and wine at a restaurant here because if you are on a date, you do not want to seem too stingy so you will pay for the expensive things. According to Hartford a grocery basket from an artisan grocery store can cost more than one from a cheaper store because the cheaper store offers cheaper options, possibly lower quality or generic brand, while the artisan store does not. Additionally, the basic at an artisan store are usually different and lean towards more expensive products than at a cheaper store. Retailers get people to shop at their store by offerings good prices, but also by offering good quality, although this is not always enough. In addition, retailers will have random sales on random items in order to get people to shop at their store, but also make money because the sale is so random that it cannot be planned for necessarily.

The Undercover Economist: Chapter 1 - Summary & Response

In his first chapter, "Who Pays for Your Coffee?" of his book The Undercover Economist, Tim Hartford discusses what goes into the price of a cup of coffee. Hartford begins by discussing how part of the success of Starbucks is based on the location of their stores. He then discusses relative scarcity, or the idea that whatever has higher demand has more power. Hartford then discusses 'marginal land," describing it as the land that determines the value of other things, it is neither the worst nor the best, rather what is most available. Hartford describes Ricardo's model for the economy of the three pieces of land that are under control of one landlord, all three of varying qualities. This model, Hartford says, can be applied to most economic situations, but does not take into underlying social practices or patterns always, so it is not all-telling. Next Hartford gives reasons for other reason why the rent for property would be high, in addition to scarcity, this can be due to it being the best so it provides the best, or there may be no alternatives. Then Hartford continues by discussing whether or not we are being ripped off by businesses, which he says yes, sometimes we are because of a company's relative monopoly on something. However, sometimes we are paying more for good service because that is our priority and sometimes we prefer what we know, so we are willing to pay more. He then discusses why rents are what they are, creating rents landlords try to avoid or control competition or try to take other's rewards. Next Hartford discusses the economy involving crime, namely that of gangs. He says that on the drug market competition is made scarce through illegal activity, which is reverted to because selling drugs is illegal anyway, so more crime will not do much and there will not be complaints to the police of being ripped off. Hartford goes on to talk about trade unions and how they are there to bargain collectively, as well as block too much entry into the profession. There are also professions that limit the number of qualified professionals and make the low-cost alternatives illegal. Hartford then explains how our country needs a balance of skilled workers as well as unskilled workers in order to create an effective system, and that immigrants are only a threat to the section of the economy that they are entering. Hartford concludes by discussing what economists should do to make our economy better.

Scarcity power is a term in Hartford's writing that describes that the power in a situation goes to whoever possesses a desired resource, especially when the resource is scarce. Store owners try to take advantage of this scarcity power by being the only shop that offers what they offer, which needs to be something people need, in a convenient area for their target customers. Store owners take advantage of scarcity power they posses by upping prices for their products because they know people need their product and if they are the only place that sells it conveniently, people will be willing to pay more for it to avoid inconvenience. Marginal lands are those lands which determine the value of the other lands, they are not always the worst land though. Marginal lands are the base line for land and changes based on what is available. For example if there is swamp land, uncultivated field, and a field of fertile soil, the best land is the land with fertile soil. But, if there is only swamp land or an uncultivated field, the uncultivated field becomes the best land available and under the highest demand. External factors that drive up prices include lack of competition, convenience, preference, and location. It is possible to apply scarcity power to the job market as well, as Hartford does. But having a college degree (BA or BS) does not give you this power on the job market because today more and more people are going to college, it is something that is almost expected of many people. Having these degrees just puts you into a smaller group of people that is still very large, so you are not a scarce resource usually. Havign higher degrees gives you this power, but even still, weighing the costs and benefits, this still is not beneficial all of the time in the job market, although you do have more scarcity power.