Tuesday, September 17, 2013

The General Grant quote I was looking for earlier

I've got a post coming up on price discrimination and the role information plays in the process. One of the things that came to mind was this anecdote from the Memoirs of Ulysses S. Grant, which describes his experiences as an eight-year-old horse trader and illustrates what happens when the seller knows too much.
As he told the story, there was a Mr. Ralston living within a few miles of the village, who owned a colt which I very much wanted. My father had offered twenty dollars for it, but Ralston wanted twenty-five. I was so anxious to have the colt, that after the owner left, I begged to be allowed to take him at the price demanded. My father yielded, but said twenty dollars was all the horse was worth, and told me to offer that price; if it was not accepted I was to offer twenty-two and a half, and if that would not get him, to give the twenty-five. I at once mounted a horse and went for the colt. When I got to Mr. Ralston's house, I said to him: "Papa says I may offer you twenty dollars for the colt, but if you won't take that, I am to offer twenty-two and a half, and if you won't take that, to give you twenty-five." It would not require a Connecticut man to guess the price finally agreed upon. This story is nearly true.

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