The greeter at Wal-Mart pushed a huge shopping cart my way as I entered the store. The cart was the Hummer of shopping carts. I was glad I lift weights so I could push it around. I checked the tire pressure and wheel alignment and started shopping. I always grab a cart whether I’m at the grocery store or department store because I like to keep my hands free. A cart avoids the awkward juggling at the checkout counter while waiting in line. I pride myself on reading Cosmo, Good Housekeeping, and People magazines in the five minutes I wait to check out. So I grab a cart even if I only have one item.
While reading the Armchair Economist, by Steven Landsburg, the author posed the question, why are shopping carts bigger now and challenged his readers to use economic tools to answer the question. Mr. Landsburg offers the following answers, which I find impoverished. 1) people are busier now. A bigger shopping cart is needed so there’s fewer trips to the store. 2) stores now offer a full array of shopping under one roof. Now when people shop it’s one stop so the cart needs to be bigger to accommodate the stereo, the carton of milk, and the dress bought for graduation. 3.) A bigger shopping cart is a psychological trick to make you feel inadequate. If Smith is checking out with a gallon of milk and Jones is checking out with a cart overflowing with products, Smith might feel like he’s not keeping up. A bigger cart allows Smith and Jones to race through conspicuous consumption.
Sometimes when faced with a complex question, I think like a beginner. This is one of those cases. I think the Armchair Economist has confused a change in demand with a change in quantity demanded.
Technology and globalization have put downward pressure on prices, especially in electronics and food. So prices have decreased. The law of demand states that as the price of good decreases, consumers buy more. So the supply of food and electronics have increased lowering the price. People buy more and need a bigger cart.
I see no difference between the armchair economists' opinions 1 and 2. Fewer trips (putting more in) vs. #2: the cart needs to be bigger to accommodate more (putting more in)
ReplyDeletei guess the cause would be different and the thinking but both support the idea that the cart needs to be bigger for space of items.
But then again after your opinion the general conclusion seems to be the size increased so that it can hold more. your opinion of it being that goods are cheaper seems reasonable, but again draws to the same conclusion proving that the original question of why shopping carts are bigger now is because they need to hold more.
I think I agree with the price goin down. the last time i was at walmart i noticed a trend of dvd's in packs of 2. They had more than one section of just dvds in packs of 2, where you get more movies for less money. if the consumer does not mind waiting for a movie, he/she will of course buy a movie they have seen a lot just because it is cheap and to see it again. I find myself almost buying movies that I thought were OK, but because of their price i felt inclined to watch it again to see if I remember it ok. if i see a movie for like $20, i tend to remember i didn't like it or it wasn't worth buying until i see it lowered. clearly there is a mental connection between the price of an item and the opinion of say a dvd.
who knows, that's my 2¢ or should i say my .04 € :)