Category Everyday economics
The evolutionary value of cancer
A recent article in Nature Reviews documents the rarity of cancer in antiquity, and speculates that "carcinogenic environmental factors in modern societies" may explain today's much higher cancer rates. Without disputing the authors' basic premise or conclusions, I wish to posit an alternative explanation: old people are useless. Women typically finish child bearing by 40 […]
Instrumentalism
It's amateur psychology hour. Sorry. In economics there are two reasons for doing something: because we enjoy it (taking a holiday at the beach); or because it is a means to an end that we enjoy (working to pay for the holiday at the beach). It's an instrumentalist perspective.
Public Enemy and public goods
Once upon a time, musicians made money by selling albums. Now that people download music, this strategy doesn't work well. But what is the alternative? In 2007, Radiohead thrilled fans and economists alike with a new approach to music distribution. They distributed their album In Rainbows electronically, allowing fans to pay any price they chose […]
Why won’t she just take a taxi?
Three years ago my mother- and father-in-law decided to sell their car. They worked out that they would save enough on maintenance and insurance to pay for a taxi at least once a week. In three years, how many times has my mother-in-law taken a taxi? Excluding trips to the airport or train station – […]
Excess supply and monopolistic competition, once again
Why do firms so often seem to produce too much, or price too high, and have to sell off the excess at a reduced price? You are a baker. You get up early and bake a batch of fresh bread. You set the price for the day. You aren't sure how much bread will be […]
Bygones are not bygones
As always, Steve Randy Waldman has produced a post (and a follow-up) based on some deep and original thought, that provokes more thought. This is the thought it provoked in me. The issue is not technocrats vs moralists. The issue is consequentialist morality vs non-consequentialist morality. In economics, bygones are forever bygones. But bygones are […]
Remembering prisoners of war
For those of us who have not known war, the words of soldiers can help us understand what Remembrance Day is about. Richard Radford is one such soldier. When war broke out in 1939, he left his studies at Cambridge and joined the British army. Captured in Libya in 1942, he spent the remaining war […]
Daylight Savings Time and the non-neutrality of money
I've heard stories about people who set their watches 10 minutes fast, so they won't be late for meetings. It's hard to understand how it could work. Do they forget they set their watches 10 minutes fast? Because if they remember, they should be able to figure out they've got an extra 10 minutes, so […]
Trick or Treating, reciprocity and social capital
I grew up in Hillsville. Trick-or-treating was exciting – and exhausting. Just a few treks up long, steep driveways were enough to tire out little legs. There are fewer trick-or-treaters in Hillsville these days. There's a newer suburb, just 10 minutes drive away, that has ideal trick-or-treating demographics: above average household incomes, children living in […]
Confessions of a central planner
"So Nick, how come a free-market economist like you is acting like a central planner?" I heard that a lot when I was an associate dean. Sometimes it was said to tease me. Sometimes out of genuine annoyance. I had my reply ready. "There are three ways to allocate resources. The market is best; soviet […]
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