Saturday, June 23, 2007

I'm not going to pay a lot for my fish!

Economist Kathryn Graddy once spent a month shadowing a trader at the Fulton Fish Market in New York, rousing herself in the early hours and paying protection money to park her car in a safe spot near the market. She discovered that market traders appeared to charge different prices to different ethnic groups. In particular, Asian buyers tended to win keener prices than white buyers. The likely explanation was that the Asian buyers had more price-sensitive customers in Chinatown.
--Tim Harford, Slate, on the power of Asian stinginess

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