Subscription boxes are all the rage these days. Subscribers pay a small fee and receive a box

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Subscription boxes are all the rage these days. Subscribers pay a small fee and receive a box each month containing music, clothing, electronics, food—you name it! A teenager named Juliette signed up for a subscription makeup box, telling her mother, “It won’t cost you much at all. I’ll just send back any items that I don’t want; you only pay for the items you keep!” Explain why Juliette is likely to buy more makeup from the subscription service than she would if she just shopped in a store. Describe, in your explanation, at least two systematic biases the subscription box service is exploiting.

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Related Book For  answer-question

Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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