The Economics of Green Tea
I just went down to the coffee shop near the Club's office and bought myself a bottle of Green Dragon Tea, produced by the company, Honest Tea (clever name, eh?). To my surprise, the bottle's label has an economics lesson on it written by the company's two co-founders, Seth Goldman and Barry Nalebuff. Check it out:
It doesn't take an Econ Ph.D. to brew tea - but Barry has one and sometimes it actually helps. Here's how. Sugar, like most goods, has a declining marginal utility. One teaspoon takes away tea's bitterness. Another adds a nice sweetness. That's where we stop. More sugar adds calories but not much more taste. By the time you've got six teaspoons per serving, it's liquid candy. Green Dragon Tea is organic and just a tad sweet.
Honestly Yours,
Seth and Barry
