Most of our Valentine’s roses come from Colombia because of the U.S. government, the perfect combination of land, labor and capital, and Walmart.
Selecting the Right Rent
When small landlords set their own NYC rents, they are nudged toward equilibrium by the power of the supply and demand sides of the market.
How to Plant Marijuana Markets
The issues are surprisingly similar for a tiny island like Nantucket and a huge state like California. Both are figuring out how to create the marijuana markets that they legalized. Legalizing Recreational Marijuana Last November, Massachusetts and California voted to…
Using Adam Smith to Cross the Road
Wondering why cars happily stop to let pedestrians cross the road on an island without traffic lights, we can find an answer from Adam Smith.
When the Price is Always Right
At two gas stations near Rotterdam, price is constantly changing. Using software that recognizes buying behavior, the retailers try to match the price to the customer. Those who are willing to pay more and those who cannot will each get appropriate price points. Done right, sales rise.…
What a Sock Can Teach Us
Manufacturing Socks in a Regional Cluster Helps Firms to Optimize Production
The Decline of Laissez-Faire
Perhaps it all began when President Lyndon Johnson called Wilbur Mills, chairman of the House Ways and Means Committee. “Wilbur, I’ve just been looking through the polls here, and I’ve only got a few weaknesses, and the worst of them…
Why China Will Make a Better Ballpoint Pen
Until Chinese innovation produces better ballpoint pens, the tips for billions of exports will have to be imported from Germany, Switzerland and Japan.
Why a Hungry Country Might Have Enough Food
Focusing on production and distribution, economists look at the role of markets and of government when they try to determine what causes and ends famines.
Adam Smith and Traffic Lights
Located 30 miles from Cape Cod, Massachusetts, the island of Nantucket has no traffic lights. Instead, drivers respond to stop signs, rotaries, and courtesy. More often than not, if a pedestrian, a walker, or a biker needs to cross the…