Are New York Taxis Such a Bad Investment? I recently attended a private-equity conference where a speaker, a TV pundit, abruptly shifted from offering tidbits from the Trumposphere to random life advice: “You have to ask yourself whether you want to … Continue reading The yellow-cab economics
In Urban China, Cash Is Rapidly Becoming Obsolete There is an audacious economic phenomenon happening in China. It has nothing to do with debt, infrastructure spending or the other major economic topics du jour. It has to do with cash … Continue reading Getting rid of cash
How Often Do Customers Pay Different Prices for the Same Thing? The theory of supply and demand teaches us that consumers will pay the same prices for the same goods in a competitive market. In reality, however, markets are rarely … Continue reading What’s the right price?
The evolutionary element of markets Economists have been accused of “physics envy”, an obsession with constructing precise mathematical models instead of studying the real, messy, world. But a new book suggests that economists have been looking at the wrong science; … Continue reading The adaptive markets hypothesis
How companies should treat their most enthusiastic customers The hero of Nick Hornby’s novel, “High Fidelity”, cannot get enough of vinyl records. By day Rob Fleming runs a record shop where he spends his time sampling the stock and constructing … Continue reading The super-consumers
Specific Anchors Are Sometimes Good When Negotiating One of the biggest cognitive influences on any negotiation is the anchor. Whenever you are negotiating about something like a salary, there is some starting number that gets things going. That initial number … Continue reading Anchoring techniques
Time for Wall Street to Produce Products for People, Not Robots Investors have a tendency to unnecessarily intervene and rebalance their portfolios, which often results in long-term underperformance (see chart below). As Morningstar has eloquently put it, investors “suffer[ing] from … Continue reading People are not robots