Why are roses so expensive on Valentines Day

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Why are roses so expensive on Valentines Day?

• In Mongkok, florists are selling 99 roses for
  6,000.
• There are many buyers!

2
The price of rose is high because

• Sellers are greedy
• Price gouging
• Wikipedia http//en.wikipedia.org/wiki/Price_goug
  ing
• Guell (p.32) the situation in which a rapid
  increase in demand is followed by a rapid
  increase in price
• Does rapid imply expected or unexpected?
• Supply
• Higher fuel costs (rise in oil prices)

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The economics of cross harbor tunnel pricing

• Three cross harbor tunnels
• (Hunghom) Cross Harbour Tunnel
• Eastern Cross Harbour Tunnel
• Western Cross Harbour Tunnel
• On May 1, 2005, Eastern Cross Harbour Tunnel
  raised the toll for private passenger car from
  15 to 25, an increase of of 67!
• What is the impact of the price hike?

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5
BOT

• Build-Operate-Transfer
• A form of project financing, wherein a private
  entity receives a franchise from the public
  sector to finance, design, construct, and operate
  a facility for a specified period, after which
  ownership is transferred back to the public
  sector (Wikipedia)
• During the time that the project proponent
  operates the facility, it is allowed to charge
  facility users appropriate tolls, fees, rentals,
  and charges stated in their contract to enable
  the project proponent to recover its investment,
  and operating and maintenance expenses in the
  project.
• Countries using the BOT Japan, Malaysia and Hong
  Kong.

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Private BOT

• BOT is now also used in the off-shoring and
  outsourcing of knowledge work.
• There is usually no government or public funding
  involved.
• Typically a Western customer contracts with an
  India or China vendor and the vendor builds and
  operates a customer call center or other business
  process for an extended period of time. But the
  client retains the right to take over the operate
  ("transfer") at any time based on certain
  conditions and certain payments to the offshore
  partner. (Wikipedia)