Coke and Pepsi

Pepsi has discovered that “fun for you” (chips and soda) increases revenue more than “good for you” (oatmeal, fruit juice, Gatorade). According to the WSJ, with Pepsi losing market share to Coke, they will focus more advertising dollars on “fun…

Changing Times

Not so long ago, the NY Times depended on ads, help wanted, real estate revenue. Now we have craigslist and monster.com. An Op-Ed Column could be read only on the Op-Ed page. Now, anyone can copy and share an article.…

Airline Fees

Weigh baggage, tag it, and place it on the conveyor belt. No you are not an airline employee. You are flying the Australian Airline, Jetstar. Any human interaction will cost you. A question about your baggage? $10. Soon, all U.S.…

Higher Gas Prices

How have we responded to higher gas prices? According to a recent study, our first response is to buy a lower grade of gasoline. Drivers, used to premium, opted for regular gasoline instead. However, because we have different “budget baskets,”…

Pricing Airline Tickets

During the 1970s, a ticket to fly between New York and Washington, D.C. cost $50 whereas one between Los Angeles and San Francisco-almost twice the distance-cost only $40.  Why? Before deregulation in 1978, the interstate airline industry was subject to extensive…

Starbucks or McDonald’s?

A recent Pew Research Center survey asked 2260 adults whether they would, “prefer to live in a place with more McDonald’s or more Starbucks.” 43% said McDonald’s; 35% said Starbucks; 22% had no preference. According to the study, a key…

A Demand and Supply Lesson

A recent NPR report on the changing status of marijuana in California is also a supply and demand story. The story begins in 1983 when the Reagan administration sought to decimate pot production in California. As a result, supply would…

Blanket Competition

Hearing that American Airlines was charging eight dollars for a blanket and pillow brought back memories of airline deregulation, Eastern Airlines, and People Express. Does anyone remember the Eastern Shuttle? With a government given monopoly on flights between LaGuardia and…