I’ve been mystified by the abundance of beauty parlors/barbershops in Germany — and by the low prices I’ve paid for their services. At home I pay $35 for a haircut by my wife’s hairdresser (nearly $1 per hair). Here, for an equal-quality haircut I pay $13 ($17). Why so low a price; why so many shops? Apparently haircuts used to . . .
Photo: sporkist My former Ph.D. student and frequent co-author Erik Snowberg sends along an interesting question: Why do discount clothing stores (like Nordstrom Rack — and clothing sales in general) have an excess of really small and really large sizes? I have to admit, I’ve always wondered. Erik continues: The typical answer seems to be that there are more medium . . .
A couple of months ago, Dubner and Levitt wrote about how poorly constructed laws can lead to some unintended consequences. Let me add one more example to their list, albeit one that I’m enjoying. The Pennsylvania Liquor Control Board was set up in the wake of the 21st Amendment, and the end of Prohibition. A direct (and presumably intended) result . . .
I walked into a Starbucks in Manhattan the other day and noticed that the food in the glass display case now lists three key facts: the name of the item, the price, and the calories. This last fact is new. It is the result of a recent New York City regulation that requires chain restaurants — those with 15 or . . .
I had my students present and discuss a study of the market for organ donations. The study points out that prices are not used to elicit supply of live organs or to ration demand, and that the shortage (waiting list) of kidneys and livers has been increasing. The authors propose using prices to reduce the shortage of both live donations . . .
We’ve looked at how the rising cost of metals has changed the value of the coins in your pocket, the pipes in your walls, and the parts under your car. It turns out that gun lovers and local police have been looking at it, too. Consider the bullet. Basically, it’s made of lead wrapped in a jacket of copper or . . .
News of the Weird has a depressing economics story this week about food prices in the poorer sections of Port-au-Prince, Haiti, which is perhaps the poorest country in the Western Hemisphere. The price of rice, the staple product, has doubled in the last year. This increase naturally has residents looking for substitutes for rice. Apparently in the past they have . . .
If the nuclear power industry is headed into a renaissance, it’s going to need the help of a renowned Japanese samurai sword maker. It turns out Japan Steel Works Ltd., in addition to hand-forging swords, also has a near-total monopoly on the manufacture of the steel containment vessels for nuclear reactors. But making the vessels is more of an art . . .
A story on the Internet noted that New Zealand is banning the so-called party pill, a stimulant that is already illegal in the U.S. The ban goes into effect April 1. Sales after that date are outlawed, and possession will be illegal after October 1. The fines on sellers after April 1 will no doubt cause a decrease in supply, . . .
Hats off to North Carolina residents, who, for almost a year now, have cut their water consumption by a third in response to a record drought. Now, the residents of Charlotte-Mecklenburg County are getting a hefty reward for their sacrifice: they’ll be paying more for their water. Perhaps ticked-off residents shouldn’t be surprised: less spending on water has left Charlotte . . .
I sometimes do wear a wig and too much eye makeup, but that’s not what I had in mind. The answer to the question is that people are scalping tickets to both of our performances. There was uproar recently about the steep prices resellers were getting for her concert tickets — sometimes upwards of $2,000. My venue is a little . . .
The dollar has taken serious hits recently, not only continuing to fall against the euro but being caught even by the Canadian loonie. From the long view, however, the dollar’s current woes are simply another step in the long and tumultuous history of paper currency in the U.S. Stephen Mihm, a professor of history at the University of Georgia and . . .
If you ask an economist how to price a new product that is just being introduced, the response you will get is that you should charge a very high price at first and then steadily reduce that price over time. There are two reasons for doing this. First, it generally gets cheaper to produce things over time, so it makes . . .
A few days back I posed the question “Why are we eating so much shrimp?” Between 1980 and 2005, the amount of shrimp consumed per person in the U.S. has nearly tripled. I didn’t expect more than 1,000 responses! I asked the question because Shane Frederick, a marketing professor at MIT’s Sloan School, had contacted me with an intriguing hypothesis. . . .
I blogged a while back about parking spaces in New York City, wondering why there aren’t more spaces for sale rather than for lease. An article in yesterday’s New York Times reveals that more new buildings are indeed selling a few parking spaces, including one building in Chelsea whose five spots are selling for $225,000 apiece. This isn’t quite the . . .
Driven by a question similar to Dubner’s theory on libraries, University of Texas economist Stan Liebowitz examines the effects of radio play on record sales, and finds that heavy radio rotation may actually hurt sales. Reader Geoffrey Wiseman pointed us to an alternative explanation for violinist Joshua Bell‘s remarkable inability to draw a crowd during his impromptu concert in a . . .
Raise your hand if you hate libraries. Even though this blog doesn’t enable me to peer through the screen into your living room (yet), I am guessing there aren’t a lot of raised hands out there. Who could possibly hate libraries? Here’s one guess: book publishers. I am probably wrong on this, but if you care about books, hear me . . .
Every thug in Nigeria needed a machete to help ensure that the general elections in the country were conducted “properly.” Take a guess what happened to the price of machetes after the election, according to Reuters. To be honest, though, I have a hard time believing this is true for the same reason that gun control laws don’t work. Machetes, . . .
Here’s a twist in our discussion of specialized online dating: a 26-year-old Australian ad salesman has created a tongue-in-cheek site meant to “weed out” the “ugly, unattractive, desperate fatsos.” Called Darwin Dating, it has since gained popularity and led to several happy matches. Craigslist posters are selling their time this week by offering to stand in line to buy iPhones . . .
Tomorrow marks the iPhone’s official release to the public, in what will be one of the most hyped and anticipated product debuts in history. So far we’ve seen prediction markets making odds on everything from sales figures to the likelihood of spontaneous combustion. But what of the aftermath? Will economists, psychologists, sociologists and other researchers pick up where the tech . . .
There has been a lot of talk, on this blog and everywhere, about the price of gas. Levitt wrote recently in favor of higher gas taxes. I went on Good Morning America last week to talk about factors that do and do not affect gas prices. (Among the events that matter: the International Olympic Committee’s 2001 meeting in Moscow that . . .
Maybe it was guest blogger Paul Kimmelman’s dissection of the Wii shortage, or your many-voiced response. Regardless: Nintendo is boosting its Wii production: Nintendo’s president acknowledged Friday that the shortage of the hit Wii game machine was “abnormal,” and promised production was being boosted to increase deliveries by next month.”We must do our best to fix this abnormal lack of . . .
Tim Davis, an artist who teaches at Bard College in upstate New York, wanted to sculpt a life-size self-portrait out of album covers of Bob Dylan’s Self Portrait. But he’s been having trouble getting enough copies, as explained in an e-mail note he sent along to friends: “I’ve been buying them on eBay, but have artificially driven up the price . . .
I have never been a huge video gamer but, having run into the Nintendo Wii a few times in the past couple of months, I can see why it is beloved. But here’s the question: why is the Wii, which was famously scarce before Christmas this year, still so hard to buy? Paul Kimmelman, a technical architect who has guest-blogged . . .
To all devoted blog readers who’ve requested signed bookplates: Don’t lose faith! Demand continues to outstrip supply here in the Freakonomics office. A great many of you have taken the authors up on their offer, and we are happily working to make good. I’ll be mailing 2,000 bookplates this week from HarperCollins and will send the remainder as fast as . . .
The average U.S. retail price for a dozen large eggs was $1.51 in the first quarter, up 33 cents, or 28%, from the fourth quarter and 43 cents higher than a year ago … Behind the higher prices: Feed. Rising corn and soybean prices have led to increased costs for feed. The increase is in large part because of rising . . .
M. Scott Taylor, an economist at the University of Calgary, argues in a new working paper that the epic 19th-century slaughter of American bison — with 10 to 15 million buffalo killed on the Great Plains in barely a decade — was driven by a technological advance and a profit motive that both came from Europe. (Incidentally, this makes me . . .
The July 9, 2006, Freakonomics column in the New York Times Magazine examines a simple supply-and-demand gap with tragic implications: the shortage of human organs for transplantation. This blog post supplies additional research material.
This week, Paul Greenberg wrote in the New York Times Magazine about how worldwide demand for Chilean sea bass (the fish formerly known as the Patagonian toothfish) has created huge supply pressures. If you care about such things, you might want to take a look at this brief BBC article about a study that uses historical menu pricing data to . . .
Emergency rooms serve as the front lines in the world of medicine. Many (most?) visits to ERs are not emergencies at all, but rather, routine visits by people with limited access to health care. As a consequence, waiting for hours to be seen is not uncommon. Forced to take all patients, the ER raises the “price” by making you wait. . . .