What is an example of a bait and hook in econ?

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2026-07-20 18:45

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A classic example of a bait and hook business model is the printer and ink cartridge scenario. The printer is sold at a low price (the bait), enticing consumers to buy it, while the ink cartridges, which are necessary for the printer to function, are sold at a much higher margin (the hook). This strategy ensures ongoing revenue from customers who need to purchase ink regularly after acquiring the printer.

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