Incentives Matter: Kegger Edition

Posted: Jul 03, 2007 11:25 AM
As scrap metal prices rise above keg deposit prices, people start forgoing deposits for profit:

The theft problem is twofold, he said. Some average keg-buying customers opt to forgo their deposits, which can sometimes range from $10 to $30, because they can cover that expense, and then some, if they sell to scrap dealers.

He could not say how much kegs go for, because prices change locally. But given prices metal trading prices in the past year, a keg could fetch from $15 to $55 or more at scrap yards.

But he said thieves know metal prices are on the rise and are on the prowl for kegs. They often find empty kegs unsecured — in alleys and anywhere else restaurants, bars or distributors might store them — and sell them at scrap yards.

You guys behave yourselves and return your kegs this weekend.