Monday, November 12, 2012

The haunted toaster!

Good morning economists! Today I would like to discuss the notion of expected utility. Whenever we purchase an item or service, we expect to receive some degree of future enjoyment out of its consumption. But what happens when the item fails or requires technical support? It suffices to say that consumers are disappointed or become agitated from the fact that their enjoyment is not what they were expecting.

Back in 1984 on the "Today" show, a woman by the name of June O' Brien took it to another level, when on national TV she admitted that her toaster was possessed by the devil!
The toaster was spitting fire, burning the loafs of bread and apparently it also knew how to write (watch the video and you will understand). Today, this interview is deemed as the greatest interview in television history and this is all because of a toaster.

You know what they say..."you get what you paid for", meaning that a higher expected utility is positively related to a higher price that we pay for an item today. Do you agree with this statement?

Meanwhile, I wonder whether the toaster was "made in China". Not to make fun of Chinese products, but I had such a toaster which spontaneously combusted! Darn it, I should have called the television stations.

Oh well!

Have a nice day!  

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