Roberto A. Ferdman on the price of beer in Germany during Oktoberfest:
Normally, beer buyers shy away from this kind of price-hike craziness. “On average, a 1% increase in the price of beer triggers a roughly .3% decline in the demand,” according the report. But Oktoberfest, it appears, is anything but average. Dating all the way back to 1980, a 1% increase in beer prices at the event has, rather incredibly, corresponded with a 0.3% increase in demand. Oktoberfest beer, the report explains, falls into the category of what economists call a Giffen paradox, whereby the demand for and price of a good increase simultaneously.