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Politics : Politics for Pros- moderated

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To: LindyBill who wrote (57248)	7/31/2004 10:54:10 AM
From: LindyBill	Read Replies (2) of 793926

Dumb Delta By Alex Tabarrok on Economics Marginal Revolution blog E-Loan offers customers a choice of processing their loan paperwork in 12 days using all-domestic workers or 10 days by bringing on some workers in India, 85 percent choose the quicker turnaround. Delta is now considering something "similar," charging a fee to have calls handled by U.S. agents. What genius came up with this? You don't need to be a behavioral economist to predict that framing the deal this way just won't fly. Instead, offer your customers a new option; lower prices if they choose to use overseas agents. Or, as Gary Leff suggests, offer the customers shorter wait times. "All our US agents are busy right now, would you like to be directed to an overseas agent for immediate service?"

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