Managerial Econ

Economic Analysis of Business Practice

Monday, October 29, 2018

What is the elasticity of demand facing Whole Foods?

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In the FTC's 2006 suit to block the merger of Whole Foods and Wild Oats, former colleague Dave Scheffman argued that the simple pricing ...
8 comments:
Friday, October 26, 2018

Japanese towns are "bidding" for citizens

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Japan's productive cities like Tokyo are growing , and the smaller towns and cities are shrinking: Educating children is incredibly e...
78 comments:
Thursday, October 25, 2018

The Opportunity Cost of Socialism

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New report by the Council of Economic Advisors on the effects of socialist policies.  Here are some highlights: In assessing the effects...
1 comment:

Marginal analysis and choice of majors

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MarginalRevolution documents the comparative--not absolute--advantage of boys in STEM subjects : Loosely speaking the situation will be so...
7 comments:
Wednesday, October 24, 2018

Marginal Analysis of Medicare

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We have blogged about over-consumption of medical care by seniors before, as it is a perfect illustration of the marginal analysis of Chapte...
3 comments:

What happened when Amazon ran price experiments to estimate MR?

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In 2000, Amazon ran some price experiments  to figure out what price to charge. Consumers were furious:  A group of consumers caught the...
6 comments:
Tuesday, October 23, 2018

Motivating medical device salespeople

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Heart valves are sold by putting inventory at hospitals.  When a surgeon opens up a patient, she chooses a valve size based on the patients ...
1 comment:
Monday, October 22, 2018

Bank stock drops 28%

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After $45M worth of loans in its portfolio went bad : Banks make money by borrowing from depositors (at 1%) and lending to business (a...
3 comments:
Sunday, October 21, 2018

A policy that achieves exactly the opposite of its original goal

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Landlords reacted to rent control in San Francisco with three strategies:  landlords moved into the property themselves, known as move-i...
5 comments:
Wednesday, October 17, 2018

How much equity should a bank have?

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Banks make money by borrowing from depositors, e.g., at 1%, and lending to businesses, e.g., at 4%.  In this case, they would make 3% on ...
109 comments:
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