I always told my economics students that while retailers often did not know the elasticity of demand for their products – how sensitive demands are to prices – they could easily infer this information by experimenting with price variations.
Articles from Harry Clarke
I posted this on FaceBook on 27th August, 2015 but current events in world equity markets invite a repost and some further comments. Quote:
“There is hysteria over the alleged “China slowdown”. 7% growth in an economy that has been growing at 8-10% for a decade is substantial growth.
Do the arithmetic.
Draft of a book review of Gernot Wagner & Martin L. Weitzman, Climate Shock: The economic Consequences of a Hotter Planet, Princeton University Press, Princeton, 2015. Comments very welcome.
The discussion of company tax and firms that don’t pay it often seems to me to be confused. Company tax is a tax on profits, on income earned after costs. These profits could be distributed as dividends to shareholders or held in firms as retained earnings and eventually paid out as dividends.
This book by George Akerlof and Robert Shiller, “Phishing for Phools” deals with the deep issues that arise in rejecting the “rationality” assumption in economic theory. If, as economic actors, we are rational and well-informed then free markets make a lot of sense.
I drafted this paper for the forthcoming Beijing Forum at Peking University. Preliminary. Comments very welcome.
Climate Policy Decisions Under Uncertainty
Honorary Visiting Fellow, Department of Economics, University of Melbourne, Parkville, Vic, 3052.
I’ll present this paper in a week or so at the Water Forum, Wodonga. Comments more than usually welcome.
Drought, Uncertainty and Water Supply Planning
Visiting Fellow, Department of Economics, University of Melbourne, Parkville 3052.
I have never understood why events such as this happen. 267 apartments were sold in Glen Waverley in 90 minutes for $70m. It doesn’t seem to me to maximize profits to the developer – charging higher prices and stretching out the period of sale (or using a simple auction procedure) would make more sense.
Around 1992 the Spanish wildlife publisher Lynx began its 16 volume Handbook of the Birds of the World. It is an extraordinary achievement with hundreds of photographers and artists contributing and with a vast amount of general as well as specific ornithological information supplied. It is the only animal family to be completely chronicled in this way and is a major scientific undertaking.