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The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.
Had you invested in KO stock back in 1990, you’d have paid less than $5 a share. You’d be looking at 10 times your investment, today, which explains the appeal the stock has for Buffett. Final ...