Business and Consumer Behaviour - Some Discussion Questions

In our Economics option group today (a group that meets three times a week to explore aspects of behavioural economics) we had a really interesting session centred around some of the following questions. They are drawn from several sources including Robert Frank's super book "The Economic Naturalist". Perhaps they might form the basis for a good classroom or tutorial discussion?

Business and Consumer Behaviour

1. What determines how much people tip? Who should get tips and who should not?

2. Usually found in convenience stores, why are some ATMs paid-for cash machines and others are free to use?

3. Theatres, cinemas and sports stadiums rarely charge to use public toilets but many of the larger railway stations in cities do – why?

4. When a printer can be bought relatively cheaply, why is the ink so expensive?

5. Explain this "Was £7.99, now £3.99." Why is this a common pricing tactic?

6. Why do many computer manufacturers offer free software whose market value exceeds the price of the computer itself?

7. Why do many photo processing stores give you a second set of prints for free?

8. Why does Transport for London charge way more for a tube or bus journey if you buy a paper ticket than it does if you use an Oyster card?

9. WiFi use is often free in budget hotels but charged at a high price in luxury hotels – why?

10. Why do most UK cinemas choose open seating whereas theatres and sports stadia usually use reserved seating?

11. Why do women’s clothes usually button from the left while men’s clothes button from the right?

12. Why does a light come on when you open the refrigerator but not when you open the freezer compartment?