Absurd luxury markets…”some khaki pants are
Absurd luxury markets…“some khaki pants are now selling for AS MUCH AS $1055” (emphasis mine). Holy shit.
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The NY Times article by Steven Levitt
The NY Times article by Steven Levitt and Stephen Dubner about talent is still on the most emailed list a week after it went up on the site…and it’s the second-most emailed story over the last month. Also of note is how politically oriented the most blogged list is compared to the most emailed list.
Design: e2 is an upcoming 6-part PBS
Design: e2 is an upcoming 6-part PBS special on the environment and the economy.
“The cluster effect is the effect of
“The cluster effect is the effect of buyers and sellers of a particular good or service congregating in a certain place and hence inducing other buyers and sellers to relocate there as well.”
Economist Thomas J. Holmes studies the diffusion
Economist Thomas J. Holmes studies the diffusion of Wal-Mart across the US (here’s a video showing the retailer’s spread). Here’s Holmes discussing how density considerations affect where Wal-Mart places their stores.
Friends and finances in 21st century America: “
Friends and finances in 21st century America: “More friends and acquaintances are now finding themselves at different points on the financial spectrum, scholars and sociologists say, thanks to broad social changes like meritocracy-based higher education, diversity in the workplace and a disparity of incomes among professions.”
James Surowiecki fills us in on a
James Surowiecki fills us in on a new investment opportunity, housing futures. “If housing futures work the way they’re supposed to, they will shift risk from those who are less able to bear it (individual homeowners with hefty mortgages) to those who are more willing to (speculators looking for a big upside on their investments). In the process, they will effectively provide a form of house-price insurance.”
New coinage by Simon Willison: pokemonetise, v., “
New coinage by Simon Willison: pokemonetise, v., “to make money by appealing to the stupid human instinct to collect dumb things”.
Launch party tonight (4/14) at Eyebeam for Yochai
Launch party tonight (4/14) at Eyebeam for Yochai Benkler’s new book, The Wealth of Networks. “His book shows why labor done outside the constraints of free markets and giant corporations can still have a huge impact on the economy and social relations. He argues that a ‘third mode of production’ offers the promise of a more free society, but only if we make the right collective decisions.”
Hobo financial indicators
Hobo financial indicators, or how to tell what the stock/bond markets are going to do based on how well hobos are living. Short discarded cigarette butts = bad, lots of dogs getting dental work at the vet = good, lots of litter on the floors of movie theatres = good. (thx, zacharie)
Lots of chatter lately about the “broken
Lots of chatter lately about the “broken windows” theory of why the US crime rate dropped so dramatically in the 80s and 90s. Writing in the Boston Globe, Daniel Brook explores the possible cracks in the theory, while proponents William Bratton & George Kelling defend it from “attacks” from ‘liberals”, “anti-police groups”, and “ivory-tower academics”. Gladwell says broken windows holds up, Dubner disagrees, and Gladwell rebuts.
eBay bidders…”would you rather pay $10 and
eBay bidders…”would you rather pay $10 and have free shipping or pay $5 and pay $6 for shipping?” Most prefer the latter.
Beautiful people commit less crime. “Other studies
Beautiful people commit less crime. “Other studies have shown that unattractive men and women are less likely to be hired, and that they earn less money, than the better-looking. Such inferior circumstances may steer some to crime, Mocan and Tekin suggest.”
People are changing how they spend their
People are changing how they spend their money, opting for buying experiences rather than things. “Just as we moved from a goods to a service economy, now we are shifting from a service to an experience economy.” (thx, malatron)
CEO pay and perks can be a
CEO pay and perks can be a good indicator of how healthy a business is, so it makes sense that investors are interested in just exactly how much chief executives make. “We shouldn’t expect to see a dent in executive compensation anytime soon. But in the long run companies that don’t balance pay with performance tend to suffer where it matters most — in the stock market.”
The economics of sex…does fear of
The economics of sex…does fear of AIDS make male less likely to self-identify as homosexual?
Three economists share a cab, getting off
Three economists share a cab, getting off at three different destinations. How do they split the fare? For answers, you might look to John Nash or the Talmud.
Surowiecki on the differences between Europeans and
Surowiecki on the differences between Europeans and Americans when it comes to work. “But since more people work in America, and since they work so many more hours, Americans create more wealth. In effect, Americans trade their productivity for more money, while Europeans trade it for more leisure.”
Surowiecki on the economics of textbooks, i.
Surowiecki on the economics of textbooks, i.e. why they cost so damn much. “You can often buy the same textbook abroad for significantly less than it costs in the U.S., so students have learned to buy directly from places like the U.K., and a host of small businesses have sprung up to import books.”
In-game space station recently purchased for $100,000. The
In-game space station recently purchased for $100,000. The game, Project Entropia, lets players earn real-world cash in the game, so it’s not such a silly investment. (via cd)
Debate between economist Milton Friedman, John Mackey (
Debate between economist Milton Friedman, John Mackey (CEO of Whole Foods) and T.J. Rodgers (CEO of Cypress Semiconductor). The discussion centers around Friedman’s assertion that “the social responsibility of business is to increase its profits”. (via mr)
James Surowiecki on insider trading and members
James Surowiecki on insider trading and members of Congress. From 1993-1998, “senators beat the market, on average, by twelve per cent annually”. Here’s a piece on the same study from the FT early last year.
A Brief Economic History of the World, 10,000
A Brief Economic History of the World, 10,000 BC-2000 AD, consisting of several PDFs. I only read the intro, but it seems pretty interesting if you’re interested in such things.
Investing is risky?
From a Washington Post article about google.org, Google’s philanthropic effort:
Shareholder activists said Google’s charitable commitment raises questions about whether this is an appropriate use of company cash or whether company founders Sergey Brin and Larry Page ought to make donations to their favorite causes personally. The foundation of Bill Gates, the founder and chairman of Microsoft Corp. and the nation’s richest person according to Forbes, gave away more than a billion dollars last year to fight poverty, hunger and disease around the world. But Gates donates through a personal foundation, rather than through Microsoft itself.
“The board of directors should make it clear to the company’s founders what should be personal and what should be corporate,” said Patrick S. McGurn, special counsel to Institutional Shareholder Services Inc. “Google is spending shareholders’ money, and it raises questions if there is not a valid corporate purpose.”
Shareholder activists? You’ve got to be kidding me. You’d think that stock shareholders are a bunch of babies that need their noses wiped and hands held to go potty or something. If you don’t want to support Google’s philanthropic efforts and think that they’re throwing your money away by doing so, there’s an easy way to opt out: DON’T BUY GOOGLE STOCK. It’s a free country and open market…vote with your money on what you think is a “valid corporate purpose”. There are thousands of other companies to invest in that are doing other things, many of which operate exactly the same…nice and safe and by the book. The information on what these companies are doing with their shareholders’ money is freely available…get informed about what you’re buying. Given their P/E ratio, unique corporate approach, and incredible rate of growth, Google might just be the riskiest large-cap stock opportunity out there, but the potential upside (as well as the downside) is a lot greater than all of those companies playing it safe. As long as it’s stated (and I believe Google certainly has made their views very clear), risk isn’t something from which shareholders should be warned away.
James Surowiecki on the Mei Moses Fine
James Surowiecki on the Mei Moses Fine Art Index and why investing in art “mutual funds” might not be such a good idea. Here’s more on the Mei Moses Fine Art Index.
Wonderful interview of Milton Glaser by Chip
Wonderful interview of Milton Glaser by Chip Kidd from a couple of years ago. Touches on his iconic I [heart] NY logo, the updated version (which the NY Commerce Dept. tried to sue him for), and the economics of design. (via df)
Nimble companies like FedEx have helped stabilize
Nimble companies like FedEx have helped stabilize the US economy by becoming more flexible. FedEx keeps 5 empty planes flying over the US each night to help fill in surprise delivery gaps as needed.
Joel Kotkin rebutts Richard Florida’s argument that
Joel Kotkin rebutts Richard Florida’s argument that what cities need to thrive are “gays, twentysomethings, and young creatives”. Florida’s ideas, which are laid down in The Rise of the Creative Class and Cities and the Creative Class, have been adopted in cities around the world with, Kotkin says, little success. Kotkin stresses that “great cities need schools for families, transport that works, jobs for the middle and the aspiring working classes”.
Freakonomists Dubner and Levitt propose a solution
Freakonomists Dubner and Levitt propose a solution for people who don’t clean up after their dogs in NYC: a mandatory doggie DNA database against which sidewalk dookies are compared and fines mailed out for offenders.
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