{"id":675,"date":"2008-09-22T23:15:12","date_gmt":"2008-09-23T07:15:12","guid":{"rendered":"http:\/\/www.oeconomist.com\/blogs\/daniel\/?p=675"},"modified":"2009-08-27T20:42:31","modified_gmt":"2009-08-28T04:42:31","slug":"cupcake-economics","status":"publish","type":"post","link":"https:\/\/www.oeconomist.com\/blogs\/daniel\/?p=675","title":{"rendered":"Cupcake Economics"},"content":{"rendered":"<p>I notice that the cupcakes at <a href=\"http:\/\/www.babycakessandiego.com\/\">Babycakes<\/a> cost something like $2.75,<span style=\"font-size: smaller ; vertical-align: top ;\">[1]<\/span> while those at <a href=\"http:\/\/breadandciecatering.com\/default.aspx\">Bread &amp; <abbr title=\"Compagnie\" style=\"font-size: inherit ;\">Cie<\/abbr><\/a> cost about $4.50.<\/p> <p>Now, regardless of whether the cupcakes at <a href=\"http:\/\/breadandciecatering.com\/default.aspx\">Bread &amp; <abbr title=\"Compagnie\" style=\"font-size: inherit ;\">Cie<\/abbr><\/a> are in fact better than those at <a href=\"http:\/\/www.babycakessandiego.com\/\">Babycakes<\/a>, I am prompted to wonder about the effect on sales if <a href=\"http:\/\/www.babycakessandiego.com\/\">Babycakes<\/a> were to introduce <em>higher-end<\/em>, more expensive cupcakes, in parallel with the present line.<\/p> <p>My guess is that it would hurt, that a significant number of people wouldn't buy the less expensive cupcakes in the presence of more expensive cupcakes, for fear of being thought <em>cheap<\/em>, and that customers wouldn't buy enough of the more expensive cupcakes to offset the loss of sales of the present line.<\/p> <hr width=\"50%\" align=\"left\" \/> <p><span style=\"font-size: smaller ; vertical-align: top ;\">[1]<\/span> <span style=\"font-weight: bolder ; font-variant: small-caps ;\">Up-Date<\/span> (2009:08\/27)<span style=\"font-weight: bolder ;\">:<\/span> I notice that some people have come to my &#39;blog looking for the price of cupcakes at <a href=\"http:\/\/www.babycakessandiego.com\/\">Babycakes<\/a>.  I therefore report that the price of cupcakes at <a href=\"http:\/\/www.babycakessandiego.com\/\">Babycakes<\/a> is now $3.00.<\/p>","protected":false},"excerpt":{"rendered":"I notice that the cupcakes at Babycakes cost something like $2.75,[1] while those at Bread &amp; Cie cost about $4.50. Now, regardless of whether the cupcakes at Bread &amp; Cie are in fact better than those at Babycakes, I am prompted to wonder about the effect on sales if Babycakes were to introduce higher-end, more [&hellip;]","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[36,4],"tags":[216,84],"class_list":["post-675","post","type-post","status-publish","format-standard","hentry","category-economics","category-public","tag-babycakes","tag-hillcrest"],"_links":{"self":[{"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=\/wp\/v2\/posts\/675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=675"}],"version-history":[{"count":0,"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=\/wp\/v2\/posts\/675\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oeconomist.com\/blogs\/daniel\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}