Thursday, February 25, 2016

What's wrong with vertical integration?

http://www.bloomberg.com/news/articles/2016-02-24/tesla-battles-general-motors-over-right-to-sell-cars-in-indiana reports that Indiana is considering a law that would make illegal Telsa's current vertical integration. Telsa currently produces and sells cars to consumers. All other manufacturers are required by law to sell to dealers who, in turn, sell to consumers.

Two questions:

  1. Is GM trying to restrict entry?
  2. Does a law that restricts vertical integration serve the public?

Tuesday, February 23, 2016

Use a precise bid to signal.

http://hbswk.hbs.edu/item/when-negotiating-a-price-never-bid-with-a-round-number reports that people who bid whole numbers fare worse in negotiations and attributes the difference to the information about you that the bid conveys.

Monday, February 22, 2016

Who is missing a chance to move resources from low-value uses to high-value uses?

This article reports that items sold by women fetch lower prices than the same items sold by men: https://www.theguardian.com/science/2016/feb/19/ebay-study-shows-online-shoppers-are-subconsciously-sexist.

Questions, assuming that the premise of the article is true.

  1. How could savvy trader take advantage of the price differentials to earn profit?
  2. What would happen to the price differential when these savvy traders act?

Saturday, February 20, 2016

Bad luck or bad decisions?

https://bgr.com/2016/02/18/apple-product-failures-all-time-lisa-pippin-newton/

Friday, February 19, 2016

Game Theory and the Race to Be the Republican Nominee for President

http://www.investors.com/politics/perspective/bush-cruz-and-rubio-hooked-on-horns-of-the-prisoners-dilemma/

Thursday, February 18, 2016

Posts on bargaining for Scarce Resources

http://edlikeseconomics.blogspot.com/search/label/Bargaining contains a series of posts on bargaining.

Tuesday, February 9, 2016

Polls v Prediction markets

http://news.discovery.com/tech/betting-markets-election-polls-121106.htm

Thursday, February 4, 2016

IBM revises its system to evaluate employees

http://timesofindia.indiatimes.com/tech/jobs/Goodbye-annual-appraisals-IBM-embraces-Checkpoint-rating-system/articleshow/50832717.cms?from=mdr

Wednesday, February 3, 2016

How do Uber and Aibnb create wealth?

http://managerialecon.blogspot.com/2016/02/should-we-eliminate-middlemen.html