Vanity Plate PRices
- Texas makes extra revenue selling vanity license plates
- Before 1986 about 160,000 Texans bought vanity plates
- 1985 Legislature authorized vanity plate fee increase
- Result was unexpected (by politicians)
- Sales dropped from 160,000 to 55,000 sets
- Revenue went up only 4%
- Price was reduced to $40 the next year
- Assumption #2 was wrong - behavior changed