tag:blogger.com,1999:blog-9204374242006832151.post6041876053402543020..comments2023-07-06T10:48:10.382+01:00Comments on Rigotnomics: Demi-tarif and reimbursement of travel expensesPierre-Louishttp://www.blogger.com/profile/03936185995162366004noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-9204374242006832151.post-69231180503877626452008-05-28T21:29:00.000+01:002008-05-28T21:29:00.000+01:00my misunderstanding...they reimburse you half the ...my misunderstanding...they reimburse you half the price even if you dont get DT. So 200 chf of travel will cost you 100 chf. SO you dont buy DT under 300 chf of planned travelling, whatever the policy. Above that, you buy DT anyway. <BR/>not trivial and true...like the comparative advantage concept.Pierre-Louishttps://www.blogger.com/profile/03936185995162366004noreply@blogger.comtag:blogger.com,1999:blog-9204374242006832151.post-12350993748249087282008-05-28T19:50:00.000+01:002008-05-28T19:50:00.000+01:00this post has really made my brain hurt...its conf...this post has really made my brain hurt...its confusing...Buying DT does depend on reimbusment policy though, I think.<BR/>If you intend to travel x times for a total of 200 CHF full price, you spend 250 CHF (with DT) if they dont reimburse you but only 150 CHF if they do. In other words you would not buy DT if they didn't reimburse (250>200), however you would buy DT if they reimburse (150<200). Basically, if you plan on travelling for less than 150 chf, you dont buy DT. If you plan on travelling between 150 and 300 chf, you buy DT only if they reimburse. And if you intend to travel for more than 300 chf, you buy DT no matter the policy.<BR/><BR/>But anyway, this partial equilibrium thinking doesn't hold in practice. What happens is that buying the DT changes the number of travels you wanna make. In other words, the number of trips is endogenous: it causes the decision to buy DT but it also is affected by it. If you don't buy DT, you don't travel a lot, if you buy it, you travel with less hesitation. So what maximises your utility, travelling or saving money?Pierre-Louishttps://www.blogger.com/profile/03936185995162366004noreply@blogger.com