Offering advice on which are the public’s most fortuitous gambles is a key responsibility for applied economists. But which economist should the public listen to? Revealing individual prediction records could go a long way to tell muddled and realistic thinkers apart.
Category: Jottings
Buying Sunglasses in Brazil (or how to restore commitment in bargaining)
The last time our family went to Brazil, our little ones arrived poorly prepared. We did not bring any sunglasses. Why would we? London’s winter sky rarely requires them. Brazil? That’s a different story. Upon our first five-minute walk between the luxurious apartment blocks, we were struck by the brightest of sunlight. Instead of buying … Continue reading Buying Sunglasses in Brazil (or how to restore commitment in bargaining)
Washing the Dishes in China and Coase’s Theory of the Firm
Just before I left for China earlier this month, the Englishman whom I told about the adventure quipped that nowadays “Britain is more socialist than China.” Be that as it may, as a theorist I'm trained to understand cause and effect, not judge the big picture. One thing I learnt: there are many markets in … Continue reading Washing the Dishes in China and Coase’s Theory of the Firm
Free Coffee! How Competition Shapes Retail Experiences
Here in the UK, the supermarket chain Waitrose used to have an intriguing service model. After finishing their purchases, buyers could pick up a complimentary newspaper and order a coffee on their way out. The coffee machine in my local supermarket is back in use, but newspapers are no longer free. I thought of that when … Continue reading Free Coffee! How Competition Shapes Retail Experiences
Coase on ‘the role of stupidity in human affairs’
I have to admit that I derive particular pleasure when economists are outright grumpy in their academic writing. Not all wisdom is tame. The following is an excerpt from an article written by 87-year-old Ronald H. Coase, who, when asked why a market-based allocation mechanism for spectrum licenses he had advocated for—decades later raising treasury … Continue reading Coase on ‘the role of stupidity in human affairs’