Friday, March 11, 2011

Economist's Notebook: Prices and Rationing

I have a great person who cuts my hair in Corvallis.  It used to be easy to schedule an appointment with her but apparently her skills are becoming more well known and now it is much more difficult to find a time that matches with my free time in Corvallis (which is very scarce).  

I have been going to her since 2006 when I first moved back to Oregon and she always reminds me that her prices have stayed the same in that time.  "Still $25, as always!" She proudly proclaims.

This time it was especially hard to make a suitable appointment so she was quite surprised when I responded that I wished it was more so I could make an appointment more easily.  

To her this was crazy talk, but to me this is how scarce resources (her talent in this case) is rationed efficiently - prices rise until demand meets supply.

She still wasn't buying it - especially when I told her she might actually do better with higher prices and a less full schedule.

And so I will continue to struggle to schedule appointments....alas.

1 comment:

Brian said...

I had these same thoughts at the brewfest last summer.