I guess it's just splitting hairs... On the one side is the classical economist saying, "Customers shouldn't be screaming in indignation over this" which is my reaction to the author's rant. The other is the behavioralist which is saying, "This is just bad business if customers feel slighted."
That would be fine if the story stopped there. The balance could be found out by experimentation between many companies and pricing models. But it doesn't stop there. Regulations are brought in and you damn well believe that they are enforced ruthlessly even in supposedly free-market friendly 'red' states.
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I guess it's just splitting hairs... On the one side is the classical economist saying, "Customers shouldn't be screaming in indignation over this" which is my reaction to the author's rant. The other is the behavioralist which is saying, "This is just bad business if customers feel slighted."
That would be fine if the story stopped there. The balance could be found out by experimentation between many companies and pricing models. But it doesn't stop there. Regulations are brought in and you damn well believe that they are enforced ruthlessly even in supposedly free-market friendly 'red' states.