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Mises Economics Blog

A delicious monopoly

February 25, 2007 9:53 PM by Jim Fedako | Other posts by Jim Fedako | Comments (6)

I was once again the victim of a monopoly; the Girl Scouts and their delicious cookies. Here exists the true monopoly; a restriction of supply (cookies available only once per year), and a higher-than-market price (based on equivalent cookies available at Wal-Mart).

Every year around this time, an addiction forces me to place cookie orders well in advance of delivery. Sitting by the door in the interim while waiting for my Do-Si-Dos to arrive, I am reduced to a Pavlovian dog; salivating every time the doorbell rings.

Due to my addiction, my demand is purely inelastic. I can only thank the Girl Scouts for selling their cookies at $3 a box. I would certainly pay more, much more. I am the consumer, helpless before the monopoly.

Shouldn't the feds do something about this? Shouldn't this pernicious monopoly be Shermanized? Or, at the very least, can't the Girl Scouts be forced to sell cookies all year long? You laugh, but the Thin Mints jones are real, and vicious.

Of course, a federalized solution would mean bland cookies sold by a scowling apparachik wearing a faded Babushka. So, I dare not look to the feds. I could purchase a year's supply, but then I wouldn't have cookie time to break the mid-winter blues.

Well, my cookie order finally arrived this weekend. And, after a half-gallon of milk and a box of Do-Si-Dos, all is forgotten. Until tomorrow, when the empty box is all that is left until next year. Anyone know where I can score some Trefoils?

Comments (6)

  • jeffrey
  • I've always thought that there was something funny about how the economics of the whole GS cookie thing works. Very strange indeed. What is the $ take of the Troop? how many are bought by parents? Why are the prices so high? Why do grocery stores let these girls compete with the store itself yet no other peddler can darken their door? The whole thing is peculiar. Is there any research on this? For that matter, what about the Girl Scouts itself? Some Progressive Era thing to shape everyone up for war participation?

  • Published: February 25, 2007 10:09 PM

  • Sudha Shenoy
  • Scouting was started in Britain around 1900 or so by Robert Baden-Powell, an Army officer. In 1910 he asked his wife & his sister to extend the movement to girls as well. I don't know when Scouting was introduced into the US. But it is assuredly _not_ another American 'Progressive' invention.

  • Published: February 25, 2007 10:38 PM

  • jeffrey
  • Ah, as I suspected, it was introduced for all the usual Progressive Era reasons.

  • Published: February 26, 2007 7:25 AM

  • darjen
  • There is nothing inherently wrong with individuals promoting progressive values, if that's what they believe. If anything, this is a great example of how private organizations can be used to do this, instead of the State. The founder could have instead lobbied the government to use our tax dollars in the creation a community youth group, but he didn't.

  • Published: February 26, 2007 8:59 AM

  • averros
  • "Babushka" means "Granny". It's not something fit to be worn on one's head:)

    I guess you meant "ushanka" which is a fur hat with earflaps which can be worn with earflaps raised and tied together above head.

  • Published: February 26, 2007 5:36 PM

  • Jim Fedako
  • According to Wikipedia, The Oxford English Dictionary defines Babushka as: A type of head-scarf. http://en.wikipedia.org/wiki/Babushka.

  • Published: February 26, 2007 9:51 PM

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