Economists Do It With Models

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Entries Tagged as 'Markets'

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Dynamic Pricing: An Economist’s Dream, And A Human’s Nightmare?

January 23rd, 2012 · 3 Comments
Buyer Beware · Econ 101 · Markets

A simple supply and demand analysis suggests that normal market forces cause prices to increase when demand increases:

The bottom line is that, after a demand increase, not everyone can get what they want at the old market price. Either the price can increase, which serves both to encourage firms to produce more and to [...]

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Tags: Buyer Beware · Econ 101 · Markets

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An Economist Finds A $10 Bill, And A Lesson On Efficient Markets…

January 1st, 2012 · 9 Comments
Behavioral Econ · Books · Markets

One of the first things I did in 2012 was find a $10 bill on the sidewalk in Harvard Square. I decided that this was a good sign for the new year, so I tweeted about it shortly after midnight. In retrospect, I should have known better, since I pretty quickly got the [...]

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Tags: Behavioral Econ · Books · Markets

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Public Versus Private Is Not The Same As Smart Versus Stupid…

December 8th, 2011 · 20 Comments
Buyer Beware · Markets · Policy

Another day, another case of firefighters letting a house burn because the owner didn’t subscribe to fire service. I wrote about this before in the context of pay-for-service ambulances, and what I’m beginning to realize is that, well, everyone is wrong. Here’s a summary of what I’ve been hearing on the fire department [...]

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Tags: Buyer Beware · Markets · Policy

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Good News For Economists And Libertarians, Bad News For Mr. Ed…

December 1st, 2011 · 14 Comments
Markets · Policy

Q: What do selling kidneys, tossing dwarfs, and eating horses have in common?

A: I don’t know- let’s ask Professor Al Roth.
Unfair. Undignified. Inappropriate, unprofessional, distasteful—and most of all, repugnant.
To the wonder and surprise of Alvin E. Roth, a Harvard economist, these harsh words are often hoisted to describe an important task of his: [...]

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Tags: Markets · Policy

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What I’m Reading Today, Teachers Are Overpaid Edition…

November 6th, 2011 · 17 Comments
Education · Markets · Policy

Long time readers may recall the think tank cartoon I posted a while back:

The Heritage Foundation is on the conservative side of this brawl, and I must say that it’s amazing how all of the objective, fact-based research that comes out of these sorts of organizations specifically supports the conservative ideology. (From what I’ve [...]

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Tags: Education · Markets · Policy