Tagged: Microeconomics

Is education really an investment? - The Dismal Science

James Zuccollo Feb 18, 2013

Education, particularly at the tertiary level, is usually viewed as an investment by economists. It’s a voluntary cost that you pay to get skills and qualifications that will increase your future wealth and prosperity. That metaphor is reflected in the wealth of research into the ‘rate of return’ on university study and the discussions of [...] … Read More

Embarrassment is a barrier to sales - The Dismal Science

James Zuccollo Jan 13, 2013

Why shop online? Avoid the embarrassment of mispronouncing foreign words or being viewed as a giant fattie! Nom nom nom nom… Abstract: We show that social interaction reduces the diversity of products purchased by consumers in two retail settings. First, we consider a field experiment conducted by Sweden’s monopoly alcohol retailer and find that moving [...] … Read More

Impact of file sharing on film industry - The Dismal Science

James Zuccollo Jan 13, 2013

Interesting that movie downloads haven’t had a significant impact on video rentals. That will probably change as video streaming services like Netflix become more common. Abstract: The music industry has struggled during the past decade due to file sharing and movie business executives fear the same fate. This paper seeks to provide measurements of the [...] … Read More

Cigarette prices and subjective well-being - The Dismal Science

James Zuccollo Jan 10, 2013

We’ve written a lot previously about cigarette taxes as a precommitment device that can increase welfare. However, while those models fit the stylised facts, it’s hard to know for sure if people are better off. For that you’d need to make a prediction about their increase in subjective wellbeing and test it. Now a couple [...] … Read More

Externalities and the changing nature of the internet - The Dismal Science

James Zuccollo Jan 09, 2013

Cory Doctorow has written a thoughtful and interesting article for the Guardian, which argues that pricing externalities will inhibit the creation of public value. …the infectious idea of internalising externalities turns its victims into grasping, would-be rentiers. You translate a document because you need it in two languages. I come along and use those translations [...] … Read More