Explaining the Health Club Memberships We Don’t Use

Behavioral economics explains that we sign up for health clubs and then don’t exercise because of unrealistic pre-commitment and upfront payment.

Weekly Roundup: From Slow Shopping to Fast Shipping

Our everyday economics include consumption expenditures, Pigovian taxes, variable pricing,economies of scale, unskilled labor, national income and the money supply.

How Music Affects Our Shopping Behavior

In a store or restaurant, music tempo is an atmospheric tool that firms engaging in monopolistic competition can use to increase customer spending and time.

Weekly Roundup: From Pacesetters to Prices

Our everyday economics includes externalities, supply and demand, price maker, monopolistic competition, oligopoly, statistics, money supply & innovation.

How Uber and Amazon Use Pricing Power

Displaying some pricing power, dynamic pricing on Amazon, for airlines, Uber and elsewhere recognizes and responds to changes in demand to maximize profits.

Our Weekly Roundup: From North Carolina to Norway

SUNDAY 10.19.2014 The reason the Russian McDonald’s is shrinking…more MONDAY 10.20.2014 The economic impact of ebola fear…more TUESDAY 10.21.2014 How more valuable women lead to less marriage…more   WEDNESDAY 10.22.2014 Why Norway has so many Teslas…more   THURSDAY 10.23.2014 The damage…

Up Like a Rocket, Down Like a Feather

At your local gas station, you might be seeing some sticky prices. Although barrels of West Texas Intermediate (WTI) and Brent Crude have steadily gotten cheaper, the price at the pump has had a less steep downward trajectory. One economic study…

Next Day Delivery and the Prisoner’s Dilemma

Retailers face the prisoners’ dilemma when deciding whether to keep next day shipping guarantees on December 23rd because a decision relates to what others do.

The Reason One Starbucks Can’t Ask Your Name

Even for a huge multinational like Starbucks, competing globally requires knowledgeable monopolistic competition and knowing local tastes and habits.

Linguiça, Linguine & Linguistics

Because restaurants engaging in monopolistic competition need to differentiate themselves, they use their menu language to show their high or low price qualities.