Book Review: Why Does Popcorn Cost So Much at the Movies and Other Pricing Puzzles by Richard B. McKenzie
Book Review: ‘Why does popcorn cost so much at the movies: and other pricing puzzles’ by Richard B. McKenzie
‘Why popcorn costs so much at the movies; and other pricing puzzles’ 1by Richard B. McKenzie2 explains the economics behind the pricing in the markets we are around everyday and the public help to generate by helping the circular flow of income. McKenzie applies logic and analyses the data he finds although there are some major flaws in his book that he does not explore on which means it gives the book weakness. McKenzie does not confine himself to general ideas of inflated prices or average market prices, he even uses reasoning about prices to show that the federal government’s rules for getting on airplanes have caused more deaths than the terrorists caused on 9/11. McKenzie has an overpowering opinion of different regulations and about why they are harmful to us. This although is a flaw as he sometimes is overly bias and causes gaps in his arguments.
The theory behind about how and why popcorn cost so much at the movies is not McKenzies best in the book. I think that this chapter is infact the weakest in the book and although the name is definitely intersesting as a title, and would grab the intention of not only keen economists but also others wanting a simple economics book – which this is definitely not. One criticism is that McKenzie states the ‘entrapment theory’ which suggests that people purchase the popcorn as it is cheaper in the cinema than the cost of their time to make it itself. This theory supports the idea that the cost of your time is what causes people to not produce the popcorn themselves. Many people do not think of this, and the fact that it is much easier than making it yourself is the decider in which people go on to think if and where they get their popcorn. The cinema is also the monopoly in the popcorn market, especially in the cinema as no other provider would be there. This means that want and worth comes into play.
‘Why popcorn costs so much at the movies; and other pricing puzzles’ 1by Richard B. McKenzie2 explains the economics behind the pricing in the markets we are around everyday and the public help to generate by helping the circular flow of income. McKenzie applies logic and analyses the data he finds although there are some major flaws in his book that he does not explore on which means it gives the book weakness. McKenzie does not confine himself to general ideas of inflated prices or average market prices, he even uses reasoning about prices to show that the federal government’s rules for getting on airplanes have caused more deaths than the terrorists caused on 9/11. McKenzie has an overpowering opinion of different regulations and about why they are harmful to us. This although is a flaw as he sometimes is overly bias and causes gaps in his arguments.
The theory behind about how and why popcorn cost so much at the movies is not McKenzies best in the book. I think that this chapter is infact the weakest in the book and although the name is definitely intersesting as a title, and would grab the intention of not only keen economists but also others wanting a simple economics book – which this is definitely not. One criticism is that McKenzie states the ‘entrapment theory’ which suggests that people purchase the popcorn as it is cheaper in the cinema than the cost of their time to make it itself. This theory supports the idea that the cost of your time is what causes people to not produce the popcorn themselves. Many people do not think of this, and the fact that it is much easier than making it yourself is the decider in which people go on to think if and where they get their popcorn. The cinema is also the monopoly in the popcorn market, especially in the cinema as no other provider would be there. This means that want and worth comes into play.