Groublogpon – The Serious Blog of Groupon

Evan Miller, economics Ph.D. student at the University of Chicago, takes a look at the economics behind Groupon in his article, Golden Footballs and the Economics of Groupon. He explores why Groupon is a win for businesses, calling it “a profound economic innovation:”

Groupon, or a commitment mechanism like it, has something to offer any business that sells a unique product above the cost of production: that is, businesses that are monopolists, or price-setters. So far Groupon has proven suitable to small businesses that offer one-of-a-kind services (for example, a downtown restaurant), but the economics hold for large businesses selling patented or highly branded products. All that is needed is a simple trade with a group of customers: a lower unit price in exchange for an agreement to buy a larger quantity than they would actually like to have at that unit price. Like the best economics, the golden football is a simple idea—but a powerful one.

Read the rest of the article here.

06/23/09: Rumor has it that Dick Cheney sometimes stops by this place to greet customers with warm, reassuring hugs

06/24/09: Brangelina-approved

06/25/09: This establishment does not offer French lessons

06/26/09: If you have teeth, then this Groupon is perfect for you

06/23/09: Could make you less crazy

06/24/09: Even more haunting than the beautiful voice of Celine Dion as she sings about the “power of love”

06/25/09: If you redeem this Groupon with a stranger, then you are not really getting the point of this place’s name

06/26/09: Their online before/after gallery makes us think of the McDonald’s Fry Guys

06/23/09: Shares the same name with a little-known Australian ice dancing team

06/24/09: The only thing that would make this place better is if their sinks had a third faucet that dispensed free Yoo Hoo. But nobody has that kind of plumbing, so let’s not be ridiculous

06/25/09: Party like it’s 1909 — which means talking about “that there Cape Cod Canal they’re buildin’” and complaining about William Howard Taft

06/26/09: Their appliances have sexy accents

06/23/09: A well-known blog that employs writers who have very traditional names, such as “Jason” and “Richard,” has the same name

06/24/09: One of our most intensest Groupons ever

06/25/09: You must demonstrate your jousting techniques in order to gain entry

06/26/09: You can use this Groupon on any service offered by the featured business except for the Rotisserie Therapy

06/23/09: Most of the eggs used by this establishment come from southern Wisconsin, which is very famous for its eggs (particularly the “fried cheese eggs,” which are egg yolks mixed with cheese, breaded and deep-fried)

06/24/09: Even if you are Steve Jobs, you can not receive an organ transplant here — but you can get a soul awakening if you just try hard enough

06/25/09: This Groupon will help cure your addiction to staring at sewer lids on the city streets

06/26/09: You will have to pay additional for “incidentals,” such as the free dragon ride and the one-hour admission to the petting zoo

06/17/09: For centuries, U.S. Senators have visited this establishment in order to ensure that they can wear their panties “with pride”

06/18/09: Every bowl comes with a free baby

06/19/09: Other than the absence of a Banana Slide on the premises, this place is pretty cool

06/17/09: Involves special booties

06/18/09: Apparently, they teach cats how to make “jazz hands”

06/19/09: This Groupon inspires us to hum the Kool & the Gang song “Fresh,” but probably wouldn’t affect you similarly

06/17/09: Named after an old Manhattan telephone exchange

06/18/09: Uptown and G-Boys (“G” is for Groupon!)

06/19/09: At no point during your redemption of this Groupon will anyone beat you with a catfish, and that’s a promise

06/17/09: Their “Silver Bullet” has nothing to do with Bob Seger

06/18/09: This place would be better if it employed a a squirrel mascot named Mr. Stretchy to cheer you on, but that’s just our opinion

06/19/09: Kind of violent, but not deadly