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Marginal Revolution: The Economics of the HDMI Cable Ripoff (via lj-user=birdwatcher) -
2009-06-13 23:11:59 GMT
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"firms overprice one aspect of service--such as a hotel charging exorbitant rates for telephone service--as an idiot tax. Crucially, the idiot tax is matched by an IQ-subsidy; the price of the hotel room is lower than it would be without the idiot tax--so the idiots don't know to shop elsewhere and the high-IQ types are, in fact, drawn to stores with an idiot tax"
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