- Cafe Hayek - http://cafehayek.com -
Inflation and Quality
Posted By Don Boudreaux On March 24, 2005 @ 3:57 pm In Prices | Comments Disabled
Suppose a hotel chain, such as Marriott, changes the sheets it uses on its beds from 200-count polyester/cotton mix sheets to 300-count pure cotton sheets. Suppose also that consumers respond positively to this change, allowing the hotel to increase its average per-night rate by $15.
How does this quality-improvement-related price hike factor into official calculations of the rate of inflation? How should it factor in? Virginia Postrel  offers a nice discussion in her column  in today’s New York Times – which closes with the admission by an economist at the Bureau of Labor Statistics that measuring inflation "is more of an art than a science, unfortunately."
Article printed from Cafe Hayek: http://cafehayek.com
URL to article: http://cafehayek.com/2005/03/inflation_and_q.html
URLs in this post:
 Virginia Postrel: http://www.dynamist.com/weblog/
 her column: http://www.nytimes.com/2005/03/24/business/24scene.html
 Image: http://www.blinklist.com/index.php?Action=Blink/addblink.php&Url=http%3A%2F%2Fcafehayek.com%2F2005%2F03%2Finflation_and_q.html&Title=Inflation%20and%20Quality
 Tweet: https://twitter.com/share
Copyright © 2011 CafeHayek.com. All rights reserved.