Armen Alchian Econ 490 Fall 2019: Transfer Pricing & Illinibucks
Nobody likes to wait, and everyone wishes to save as much time as possible. This, I assume, is why one would use Illinibucks, effectively giving students the ability to 'skip the line' in various situations. Based on the prompt, it seems as if students would pay a set rate, and after paying may move up in the queue. So, according to the professor's example, one may register for classes before others if they pay a certain rate that is pre-determined. However, I do find this idea confusing, as everybody receives the Illinibucks for no additional cost. With that being said, how does one stick out from the group and move to the front of the line if multiple people choose to pay the pre-determined price? I think it would make sense if the first person to pay the rate gets the benefits, but this simply returns the whole scenario as a 'first come, first serve' one.
To get around this, I thought of an idea that allows for multiple people to pay the rate. During midterm and finals weeks, the library can fill up fast. I have been to the library many times to study for big tests, but unless you get there extremely early, you won't find a seat, as they are all taken. I think many people have a need for a quiet place to study, especially if you live in a place that's loud or distracting. I propose that one can use Illinibucks to reserve a spot for the night at one of these libraries. Assuming that no seat is better than another, students can pay a flat rate to receive a seat at the table during one of these busy nights, similar to paying cover at a bar. In the interest of time, students no longer need to show up to the library hours before they really feel like studying. This also allows for many people to receive the benefits of using the Illinibucks. As opposed to registering for classes, this doesn't create a line, where one person registers first, then the next person and so on. Everyone receives the same benefit with their flat rate, and there is no need to pay more than anyone else for a seat (unless selling your seat after the fact if spots run out). A problem I see with this idea is that students would have to be given enough Illinibucks for multiple trips to the library, or else they would have to pick and choose which days they really need to study, depending on the difficulty of the class.
I would certainly use my Illinibucks for this. Having a place to study is very necessary for me, as the house I live in is loud to the point where I can't possibly get anything serious done. However, this definitely depends on the price. If the price is too high, I wouldn't pay it and would try and study at a friend's place that might be more fit for something like that. I think that this would be many people's moves. For example, if one visit to the library costs an entire student's wallet full of Illinibucks, than people would definitely use their Illinibucks for something else, or use them for the most important midterm or final that they have. If the price is too low, it may be nearly impossible for many people to receive a seat, even though there are many, because they would go very fast. The price has to be just right, so as to allow students the opportunity to study at the library, as well as think about whether they want to spend their Illinibucks.
To get around this, I thought of an idea that allows for multiple people to pay the rate. During midterm and finals weeks, the library can fill up fast. I have been to the library many times to study for big tests, but unless you get there extremely early, you won't find a seat, as they are all taken. I think many people have a need for a quiet place to study, especially if you live in a place that's loud or distracting. I propose that one can use Illinibucks to reserve a spot for the night at one of these libraries. Assuming that no seat is better than another, students can pay a flat rate to receive a seat at the table during one of these busy nights, similar to paying cover at a bar. In the interest of time, students no longer need to show up to the library hours before they really feel like studying. This also allows for many people to receive the benefits of using the Illinibucks. As opposed to registering for classes, this doesn't create a line, where one person registers first, then the next person and so on. Everyone receives the same benefit with their flat rate, and there is no need to pay more than anyone else for a seat (unless selling your seat after the fact if spots run out). A problem I see with this idea is that students would have to be given enough Illinibucks for multiple trips to the library, or else they would have to pick and choose which days they really need to study, depending on the difficulty of the class.
I would certainly use my Illinibucks for this. Having a place to study is very necessary for me, as the house I live in is loud to the point where I can't possibly get anything serious done. However, this definitely depends on the price. If the price is too high, I wouldn't pay it and would try and study at a friend's place that might be more fit for something like that. I think that this would be many people's moves. For example, if one visit to the library costs an entire student's wallet full of Illinibucks, than people would definitely use their Illinibucks for something else, or use them for the most important midterm or final that they have. If the price is too low, it may be nearly impossible for many people to receive a seat, even though there are many, because they would go very fast. The price has to be just right, so as to allow students the opportunity to study at the library, as well as think about whether they want to spend their Illinibucks.
I'm going to react from the bottom up. Please explain whether the house you live in has students and, if so, why they don't have the same study needs as you have. So that would suggest that around exam times the house would be quiet. Since Illinibucks as a solution was just a hypothetical and you need a real answer to this, why not try to make some progress on the volume in your house during exams. Put a different way, if everyone has earbuds, which they use for their portable listening, why not encourage that during exam?
ReplyDeleteAs to your next to last paragraph, where it is suggested to pay for a library seat, if certain classrooms were allocated for study space after a specified hour of the day - let's say 6 PM - would that help in terms of adding capacity for this purpose? Maybe some classrooms that are not scheduled for courses or departmental seminars could be made available even earlier. Would that work to address this issue? I believe classrooms are currently used this way but not in an efficient manner. A handful of students claim the room and then put out a do not disturb sign. I can understand them doing that if they want to use it for group work, but maybe first come first serve is not the right way to allocate space like this.
On the registration example, suppose you could get into one preferred course early and then the rest of your registration was as is. Does that make more sense?
At the house I lived in last year and the year before, quiet hours were enforced. It was much for structured as it was my fraternities chapter house, and the students on the exec board lived there. However, this year I live in my senior house, in which there are no rules. We are very good about forcing each other to do dishes and clean often. So, it would make sense that we can create quiet hours. However, unless it is finals week, students have tests on various nights of the week, and generally go out on nights they don't. I don't like being the one that tells everyone to quiet down when they are trying to have a good time, and I think everyone feels the same way. I think it is mutually agreed that, if you have things you need to do, then you shouldn't be doing them there. Also, I personally don't have a desk in my room, so the only place in the house I can study is on our kitchen island, where it is without a doubt full of other people.
DeleteI think the classroom idea makes sense. I have also allocated these rooms before, but in the way that you have mentioned. We would take a full classroom just for ourselves, effectively blocking off the room for other people. There are plenty of seats in these spaces, and they definitely could be used with Illinibucks. I think that libraries are more comfortable, mostly due to the amount of desk space, so maybe those can be a higher price.
Your registration example does make sense. I think it is unfair to pay Illinicuks and be able to register for your entire class schedule before anyone else. Students should pick the class that they need the most, and use their Illinibucks for that. However, this should be a high cost so students don't use all of their Illinibucks for their entire schedule.