The reason that we cannot resist limited edition drinks like a Starbucks Pumpkin Spice Latte is diminishing marginal utility.…
Why a Starbucks Christmas Tree Frappuccino Has a Brief Life
The Christmas Tree Frappuccino had a short life. It was here Thursday and gone Monday. But Starbucks had a good reason. Frappuccino History The Christmas Tree Frappuccino was the latest in a limited e…
Managing the McRib
Knowing that McRib supply is not predictable, the fans of the pork, barbecue sauce, onions and pickle sandwich are delighted whenever it resurfaces.…
Weekly Roundup: From Drinking Behavior to Dating Decisions
This week’s everyday economics involved 6 economists and such ideas as product differentiation, behavioral economics, marginal utility, price and trade.…
All-You-Can-Eat Buffet Economics
Explained by Alfred Marshall and evident at restaurant buffet tables, the idea of diminishing marginal utility shows how marginal analysis is valuable.…
Marginal Analysis: The Return of the McRib
The McRib is back. People wonder though, why McDonald’s doesn’t just leave it on the menu. The reason might be how we perceive that extra bite. Have you ever seen one of those newspaper de…
Too Safe?
Assume for a moment that you have to decide whether to install body scanners at every airport in the U.S. Knowing a decision to proceed will make everyone safer, you say, “Yes.” But, what …
"Tweetquakes"
Sometimes Tweets travel faster than seismic waves. And then, what happens? In this wonderful webcomic from April 2010, an earthquake strikes, people Tweet, and within seconds, the news beats the tembl…
"LeBronomics"
Called “LeBronomics” by NPR’s Planet Money, LeBron James’ decision to go to Miami was about much more than $99 million. Instead, the key issue was “utils”. Whenever…
Money and Happiness
Does money buy happiness? A 2006 report from the Pew Research Center said yes and no. If we compare income groups, the answer is yes. Almost 50% of people earning more than $100,000 annually said they…