Puzzling About Costs (and Popcorn)

As we’ve change into extra vigilant in our try to revive value principle, we’ve been wanting again by the archives for supporting materials, and this early EconTalk episode with Richard McKenzie was on the high of our record! (We advocate McKenzie’s e book Why Popcorn Prices So A lot on the Films, too!)

We invite you to hear (or re-listen!) to this basic episode, and share your responses to the puzzles beneath. (Bonus factors should you embrace graphs!)

1- The dialog begins with a dialogue concerning the excessive value of water in California. Why is the value of water so excessive, if not for a scarcity of rainfall?

2- How does flood insurance coverage just about assure extra flood harm, and why is flood insurance coverage typically cheaper in a flood zone?

3- McKenzie argues that terrorists killed extra Individuals after the 9/11 assaults. How might this be?

4- What explains steep value declines in retail after Christmas? Notice that Roberts and McKenzie disagree on this reply. What’s the nature of their disagreement? Whose resolution do you like, and why?

This query, much more than the others, could strike you as outdated. So I requested Richard McKenzie how he may replace this story. McKenzie isn’t conscious of any follow-up research of this nature notably with regard to freeway deaths. He no wonders why there have been no follow-up research on freeway deaths, particularly given how far more complicated econometrics is in the present day than instantly after 9/11? What would you say the reply to McKenzie’s new query could be?

5- Lastly, and in a nod to the title of McKenzie’s’ e book, why does popcorn price a lot on the motion pictures? How may this relationship have modified since this episode aired, notably given the appearance of streaming?