Tuesday, August 11, 2009

It’s the Language of Action, Not a Trick

This article provides an application of the "Austrian" concept of value to an everyday life phenomenon – retail discounts termed buy-one-get-one-half-off. The thesis is that the success of this marketing approach lies in the very nature of human action rather than in our tendency to misjudge some situations. The article provides step by step examples and a reference to Murray Rothbard’s value scale concept to illustrate this point. In addition, a critique of the Marshallian approach to “price discrimination” and of the tendency to attach negative ethical judgement to this marketing technique is provided.

Read the full text here or see an edited version at Mises.org

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