《牛奶可乐经济学》奶可经济：免费花生、昂贵电池

A few days ago, I was in London with my parents. We wandered on a street that was full of luxury stores since my mom wanted to buy some fancy bags for her friends. The cost of it there was almost the same as that in China, instead of being much cheaper. After hesitating, the friend gave up the expensive bag because purchasing the bag in London had no advantage over buying it in China.

Then I think of a concept that I learned from this book: the "no cash on the table" principle. In case, it means that the price of a bag in two countries generally will not differ by more than the cost of shipping the stuff from one to the other. A Chanel bag is a highly standardized commodity as the example of gold in the book. If the price differs considerably in the two countries, there would be someone who buys the bag in London at a cheaper price and then resells it in China, which would make good profits for that person. According to the book, this would create a bad condition for some luxury stores in China since people are more likely to buy products abroad.

This was the first time that I applied the economic knowledge in my life, which was quite interesting.

Whats more, I got more detailed examples about the model of supply and demand in this chapter, which I failed to understand in history and politics classes when I was in junior high school.