Category Archives: Economics

SUNK COSTS—THE CASE OF MARK SANCHEZ.

Posted on January 23, 2013 by Philip

SUNK COSTS—THE CASE OF MARK SANCHEZ. A friend called my attention to an article by James Surowiecki in the New Yorker (January 21). Mark Sanchez, the New York Jet quarterback, had a poor year, but has a guaranteed salary for … Continue reading →

Posted in Economics, Football, Sports | Leave a comment

STEALING HAY.

Posted on January 12, 2013 by Philip

STEALING HAY. Bulky, low-value objects would seem to be unlikely targets for theft, but this article in the New York Times by Jack Haley (January 9) reports that thefts of hay (in 800 pound bundles) have increased this year. The … Continue reading →

Posted in Economics | Leave a comment

TIDE DETERGENT CONSIDERED AS MONEY.

Posted on January 12, 2013 by Philip

TIDE DETERGENT CONSIDERED AS MONEY. Every so often in the past few years I have seen a report of a shoplifter taking packages of Tide from a local store. I have not understood this because I would think that small … Continue reading →

Posted in Economics | 1 Comment

NAMING “THE GREAT RECESSION”.

Posted on January 11, 2013 by Philip

NAMING “THE GREAT RECESSION”. During the several years I have tried to be consistent about calling the state of the economy “the current financial crisis”. John Lanchester calls it “the Great Recession”. I think that’s a better name, and I … Continue reading →

Posted in Economics, History | Leave a comment

NATE SILVER BECOMES AN ADVERB.

Posted on January 10, 2013 by Philip

NATE SILVER BECOMES AN ADVERB. I posted here about how Nate Silver has had such great success in political predictions that his name has been used as a verb. John Lanchester had a good article in the London Review of … Continue reading →

Posted in Economics, Politics | Leave a comment

DETECTING PRICE FIXING BY TESTING FOR RANDOMNESS.

Posted on January 7, 2013 by Philip

DETECTING PRICE FIXING BY TESTING FOR RANDOMNESS. The belief that price fixing could only occur when there were not many firms in the market is challenged whenever larger conspiracies are revealed. This article in the Economist (December 15, 2012) describes … Continue reading →

Posted in Economics | Leave a comment

HOW LIBOR COULD BE RIGGED.

Posted on January 6, 2013 by Philip

HOW LIBOR COULD BE RIGGED. The LIBOR conspiracies appear at first glance to be difficult to put together because they involved a large number of people at each bank who knew about what was happening—both the representatives preparing and submitting … Continue reading →

Posted in Economics, History | Leave a comment

LIBOR —AN “IMPOSSIBLE” CARTEL?.

Posted on January 5, 2013 by Philip

LIBOR—AN “IMPOSSIBLE” CARTEL? LIBOR (the “London Interbank Offered Rate”) has been for many years the benchmark used in all kinds of borrowing documents. For example, a loan document (such as a mortgage agreement) might set the interest rate payable for … Continue reading →

Posted in Economics, History, Politics | Leave a comment

“SOMEBODY ALWAYS CHEATS”

Posted on January 4, 2013 by Philip

“SOMEBODY ALWAYS CHEATS” When Meyer Burstein taught about price fixing or cartels, he pointed out that he had been a participant in a price fixing cartel before becoming an economist. The problem, he said cheerfully, was in keeping the cartel … Continue reading →

Posted in Economics, History | Leave a comment

CLIFFS AND COWCATCHERS.

Posted on January 2, 2013 by Philip

CLIFFS AND COWCATCHERS. Our discussions of the fiscal cliff in terms of a chicken game left out some political advantages of the cliff for federal lawmakers. I posted about “cowcatcher” bills here. In discussing the Senate bill to deal with … Continue reading →

Posted in Economics, Politics | Leave a comment