The Curse of Knowledge: Price Bubbles and Airline Logos

Lufthansa terminal

 

“Why do they have pictures of knives and forks here, daddy?” My daughter, then six-years old, was gazing out of the window of the airport bus as it brought us from the aircraft to the terminal building of Frankfurt Airport. I looked up briefly from my text messages. “Where do you see knives and forks, sweetheart?” I asked. “Everywhere”, she cried. I peered out of the window more intently this time. I leaned over to align my viewpoint with hers. I looked behind to check the area the bus had just passed. I looked left and right, inside and outside. Nowhere could I see cutlery of any description. “I can’t see any knives or forks”, I said, apologetically. She grew visibly exasperated: “Look! There! And there!” I didn’t want to upset her, so I remained silent as I scrutinized our surroundings. Then I saw them. They were indeed everywhere.

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