Saturday, November 23, 2013

Economics Lessons at Lenscrafters

Somehow, got suckered into paying $500 for glasses (gee I saved 40% off the list price of $850) when you can get pretty much the same pair online for $170 from Warby Parker free shipping free returns. Mostly put up with it because stupid regulations required me to go to Lenscrafters to get a new prescription every year to order online even though my eyes haven't changed in 20 years, and the fact that Vassar has excellent vision insurance, which eliminates my incentives to shop around.

Lessons Learned:
  1. Monopoly power and the limits of arbitrage
  2. The costs of government regulation
  3. The Moral Hazard from having insurance

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