Piecing Together the Puzzle: The Quirky Economics of Pizza sales for the Year 11 Prom

Welcome to the intriguing world of international school economics, where the seemingly mundane task of organising a Year 11 prom unravels into a captivating exploration of human behaviour and economic quirks. Behind the scenes of this student-funded, annual extravaganza lies a fascinating tale of pizza sales and pricing strategies. While the casual observer might dismiss it as a simple fundraising effort, a closer look reveals a complex interplay of economics, psychology and social dynamics that intrigues me...

This post is my attempt to unravel a perplexing phenomenon: the curious case of seemingly irrational pizza box purchases by students. Here, I delve into the factors that might be influencing these decisions, aiming to not only illuminate the humorous aspects of economic decision-making but also provide valuable insights into the complex realm of human choices and preferences.

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Pizza Sales and Pricing Strategy:

The Year 11 prom is a student-funded annual event. The more money they raise, the better the prom: more photographers, more photobooths and cheaper tickets...To finance this, a Year 11 prom committee is usually established and part of their work will always include the selling of pizzas. The local Domino’s Pizza runs 2 for 1 on large pizzas so the committee will tend to order about 40 to 50 extra-large pizzas, each arriving divided into 8 slices. The school puts a cap on one pizza sale per month (our canteen would end up closing down, otherwise). Slices are priced at 5 ringgits per slice, or you can pay 50 ringgits for a whole pizza in the box, and they sell out in a tiny window of time during lunch... At first glance, the pricing strategy seems pretty straightforward, offering flexibility to customers who prefer a slice or wish to go big and purchase a whole pizza. However, a quick calculation should render buying slices as the obvious way to go…buying a full box costs 10 whole ringgits more than 8 separate slices...you pay for 10 slices if you buy a box of 8!

The Mathematics of Pizza Box Purchases:

Against all odds, many students still continue to opt to purchase the entire pizza box rather than individual slices. This unexpected choice raises eyebrows and has prompted me to question their understanding of basic maths and economics. After all, buying a whole box for 50 ringgits seems to defy logic, as one should quickly compute and see buying slices individually as more cost-effective. Yet I see kids that have won international maths competitions buying boxes...there must be more to this.

Analysing student behaviour: While initially perplexing, the students' purchasing behaviours could be attributed to various factors that highlight their (ir)rationality and preferences for convenience. Here are some possible suggestions as to why this phenomenon continues:

Lazy Fast Thinking: The decision to opt for whole pizza boxes may be a result of fast thinking, as described by Daniel Kahneman. Rather than engaging ‘slow brain’ thinking and calculating the cost per slice for a box, they may have relied on instinct and assumed that buying a whole box would bring about economies of scale, without actually working out the maths.

But surely it cannot be lazy thinking, many of our students can quickly work out the multiplier in their heads, given a random MPC...our younger students can calculate full PED questions without blinking...it cannot be completely maths-related...

Speed of sales/demand: Another plausible explanation lies in the rapid speed at which the sale of the pizzas takes place. The students, swept up in the excitement, may have been eager to secure a box for themselves, fearing that the slices would vanish in no time. Their urgency to enjoy the pizzas might have driven them to choose the convenience of a whole box. Demand implying slurping up the supply?

Social Convenience: Handling numerous pizza slices can be messy; the risk of dropping them on the way to your seat is a genuine concern. Moreover, pizza is a social affair, best enjoyed with friends. Opting for whole pizza boxes offers practicality in group settings, enabling shared enjoyment of the cheesy experience. Additionally, when purchasing a large number of slices, the need for something to carry them with becomes apparent, further favouring the box option. It's likely that even if students were to buy 8 slices separately, the seller would still bundle them together, making the box the more convenient choice. Thus, the convenience factor stands out as a compelling reason, explaining why intelligent students persist in selecting the more expensive, full-box option.  

Social Perception and Ostentatious Spending: Consider the possibility of a social flex at play here. Purchasing a whole pizza box might be akin to a footballer buying a once-unattainable car now that they're financially well-off. Some students openly express their willingness to bear the additional cost, suggesting a certain affluence. From the sellers' perspective, this trend benefits them too, allowing them to clear stock effectively, essentially selling 10 slices for the price of 8. This intertwining of social image and perceived value adds an intriguing layer to the phenomenon.

Implications for Mathematics and Economic Understanding:

This unexpected purchasing behaviour demonstrates economic irrationality while considering convenience and social dynamics. Beyond the realm of mathematical calculations, no one could explain to me why the pricing strategies were selected and all I was told by prom committee members and some teachers involved was that “it’s always been this way!” It’s quite possible that the first time this happened it was a mistake, but whoever that was is long gone and forgotten but the pricing strategy remains… however, when into account factors such as laziness, urgency, and perceived value, this showcases the quirky side of decision-making.

This phenomenon highlights the intriguing intersection of mathematics and economics. The prom committee's choices illustrate the influence of qualitative aspects alongside quantitative considerations in shaping their decisions.

Conclusion: In conclusion, the curious case of students choosing whole pizza boxes over slices reveals fascinating intersections between psychology, economics, and social dynamics. This blend of fast thinking, convenience, social influence and charitable contribution paints a vibrant picture of economic decision-making. By understanding these complexities, we not only unravel the quirky side of human behaviour but also gain valuable insights applicable to both the economic and social spheres. This analysis serves as a reminder that behind seemingly irrational decisions, there exists a world of intricate motivations, waiting to be explored and understood.

Maybe, with integrity as a core value, we should consider this a supply-side issue, not one of demand. But let's leave that analysis for another day.