I just spent a great week in London with the family (see here, and here) and yes, I did run across a few pasties, including these, in the breathtaking food halls at Harrods: I find it hard to believe that the food halls can be profitable; part of the spectacle is the volume and variety of every sort of food . . .
Sudhir Venkatesh wondered recently on this blog why the Wall Street meltdown hadn’t set off a wave of rioting in the streets. But riots may not be so far off, if the continuing unrest in Greece is any indication. (Take a look at a compelling set of photos from the always-compelling Big Picture blog.) In The Atlantic, meanwhile, Robert Kaplan . . .
I’m not a big fan of focus groups (when it comes to businesses figuring out what customers want) for a number of reasons. First, they are unnatural settings with a very high degree of scrutiny, which may distort how people respond. Second, it seems likely that people will tend to say what they think others expect them to say, or . . .
If things keep going as they are, Billboard is going to have to start a new Hot 100 chart just for songs about the Great Recession. Earlier we posted a music video of “Fannie Mae Eat Freddie Mac and Cheese.” Here now are two more recession blues: “Credit River,” by Constantines: Constantines – Credit River And “Everybody’s Getting Bailed Out . . .
My wife announced yesterday that she is “traveled out.” I’m not surprised — I am too: Since mid-August we’ve taken trips (mostly long weekends) to Istanbul, Munich, French Switzerland, northeast Italy, Amsterdam, Dublin, London, Barcelona, and, starting tomorrow, Paris plus London again.
Anyone who pays short-run capital gains tax this year is either really lucky or really dumb.
Freakonomics reader Presh Talwalkar, author of the Mind Your Decisions blog, wonders why there’s no holiday-gift guide for economists: I see many practical applications to such a list. It could help students give gifts to professors, businesses give gifts to hired economists, etc. Perhaps this list would reduce the “deadweight loss” of Christmas gifts. The problem, of course, is that . . .
Color me confused, but I’ve never really understood the difference between a bet and “financial trade.” And if there ever really was a line, it’s definitely becoming blurrier. In recent months, there have been millions of dollars bet in options markets, as traders seek a big payday in the event that the economy heads south — and this hasn’t raised . . .
In the wake of a crackdown on black-market alcohol in Indonesia, the country’s sole legal alcohol importer is suddenly faced with meeting demand four times higher than what the government’s import quotas allow. The resulting crunch has led to chronic alcohol shortages and skyrocketing prices across the country, the BBC reports. Alcohol consumption is generally frowned upon in Indonesia — . . .
CNBC delves into the Bernie Madoff story tonight at 9 p.m. E.S.T. For those intrigued by white-collar crime, this should be quite an interesting show. I’m still struggling to understand how a fund that claims to have $17 billion in assets can have defrauded investors for $50 billion. Had he also borrowed $33 billion that he will never repay, so . . .
At around 231 million percent, Zimbabwe’s hyperinflation (which we’ve written about before) is currently the highest in the world. Blog reader Ben Saltsman sent us this photo of a restroom sign in South Africa, which hints at one use for Zimbabwe’s severely devalued currency: Photo: Eugine Baron But is it cost-effective for Zimbabweans to use money instead of T.P.? A . . .
My Michigan son tells me that the Detroit Free Press will be doing home delivery only three days a week as a cost-cutting measure. I asked him what the source of the difficulty is, and he responded succinctly, “The internet, Dad!” Of course he’s right; internet advertising at least partly displaces print advertising, shifting the demand curve for newspapers leftward; . . .
We’ve been following James Altucher‘s continuing social experiment around the idea of ad-agency disintermediation — JungleSmash, a cash contest where people compete to make the best commercial for a product of James’s choosing. The submissions are in for the latest product: Monster Energy Drinks. It’s a little graphic, but “Garage Can-Opener Massacre” is definitely worth a watch — as are . . .
On family holiday in London, we were riding in a taxi out to the Imperial War Museum. As we passed the riverfront headquarters of MI6, a.k.a. the Secret Intelligence Service, my wife happened to be futzing with her iPhone. A list of Wi-Fi networks popped up. At the top: a network called KeepNoseOut. Coincidence? I’d like to think not. I . . .
My son took the SSAT exam this past Saturday. And while I was sitting in the Choate athletic facility waiting for him to finish, I remembered that Avinash Dixit and Barry Nalebuff‘s new book, The Art of Strategy, has a great example concerning standardized testing. Game theory is so powerful it can help you figure out the correct answer without . . .
Julian Zelizer Last week we solicited your questions for political historian Julian Zelizer. In the aftermath of an historic election and in the midst of strange and shocking political events, many of your questions had the zing of the moment about them — including whether any other president has had a shoe thrown at him. (Unfortunately, the answer isn’t yet . . .
New research finds that credit-card holders pay down their debts more slowly when their statements suggest a minimum monthly installment. The Economist reports on the study, by University of Warwick psychologist Dr. Neil Stewart: Mr. Stewart presented 413 people with mock credit-card bills of ?435.76 (about $650) that were identical — except that only half mentioned a minimum payment of . . .
Am on holiday with the family in London. Pure joy — although my 6-year-old daughter, who’d recently heard that black pepper can force a sneeze, took a handful and somehow mashed it into her eye instead; tears ensued; but it was nothing a trip to Hamleys couldn’t cure. At a very delicious Italian restaurant called Pappa Ciccia, there is a . . .
In early December, I spoke at a Yale Law School breakfast on the current financial crisis — focusing on Robert Shiller‘s book, The Subprime Solution. (Several of my earlier posts — here and here — were actually preparation for my presentation.) The first question to Shiller from the audience began: “Lots of my investment-banker friends are saying: Dubai, Shanghai, Mumbai, . . .
Bernard L. Madoff is not a young man, and if he is convicted of the crimes of which he stands accused, he may spend the rest of his life in prison. But on the off chance he doesn’t, he may wish to consider Sam Antar, of Crazy Eddie fame, as a future role model. Do you remember Crazy Eddie? A . . .
If you believe what you read, then the answer to that question is that they are both examples of one of economics’ most illusive objects: Giffen goods. But don’t always believe what you read.
A Giffen good is a product or service for which demand rises with price. In other words, if you hold everything else constant, but the good gets more expensive, the quantity consumed will increase.
Martin Shubik invented a famous game-theory exercise, sometimes called “the dollar auction,” where a teacher auctions off a $20 bill to the highest bidder. Bids have to be in round dollar amounts, but the twist is that both the highest and the second-highest bidder have to pay. When uninitiated students start to play this game, someone rushes to bid $3 . . .
Arne Duncan is expected to be announced as the next secretary of education later today. Freakonomics readers will remember Arne as the hero of our chapter on teacher cheating. He was head of the Chicago Public Schools when Brian Jacob and I were investigating how teachers and administrators were doctoring standardized test sheets. With seemingly nothing to gain and much . . .
Which cars do thieves prefer these days? (HT: Raj Haas) A personal savings website uses the nosy-friends-and-family incentive. (Earlier) From the Department of Oops: mistakenly using a brothel ad as your magazine cover. (Earlier) How is buying a plane ticket like getting a seat at a baseball game? (HT: Patrick McGrady)
There is a Catalan custom of men giving women and girls red roses on St. George’s Day (April 23), while women traditionally give men and boys a book on that day.
My guide mentioned that the books are always sold to the (female) buyer at a 10 percent discount below the regular price; when asked whether the roses are discounted, she said, “No way!” Typically most roses are imported for this peak load time from the Netherlands and are even sold at a premium.
A reader named Evan Schumacher wrote in with an interesting bleg. (Read about blegs here and send your own here.) Tucked inside his bleg is the part that tickled me the most: a website Evan created to tell him whether it’s worth it to watch a basketball game he’d recorded. Anyway, I’ll give my answer below, after his bleg. I . . .
Books on economics have become far more popular in recent years, with Freakonomics being one example. Fantasy books are also rising in popularity, with my beloved Harry Potter books leading the charge. It is perhaps not surprising that someone would try to weave these two strands of literature together. Daniel Abraham‘s novelette The Cambist and Lord Iron: A Fairytale of . . .
Julian Zelizer With all the strange political doings these days — a wild campaign season, Republican senators falling from grace in Alaska and in airport men’s rooms, Democratic governors engaged in shakedowns and ‘ho-downs — wouldn’t you like to have a political historian stashed in the next room so you could whip him out, the way Woody Allen did with . . .
Here’s a letter that Roy Blount Jr., a wonderful author (all football fans should read his Steelers classic About Three Bricks Shy …) and president of the Authors Guild, recently sent to Guild members: I’ve been talking to booksellers lately who report that times are hard. And local booksellers aren’t known for vast reserves of capital, so a serious dip . . .
Earlier this week, Nathan Myhrvold gave us his thoughts (and photos) from a visit to Shanghai. Here, as promised, is the second installment of his China trip, which takes him to Beijing. You will probably never look at Peking duck — or the Bird’s Nest — quite the same way again. His earlier posts on Iceland and Greenland can be . . .