Weekly Roundup: From Baseball Contracts to Super Bowl Ads

Our week’s everyday economics include inflation, supply and demand, income mobility, property rights, incentives, default, CDS, and monopoly pricing.

How To Keep Your Parking Spot After a Snow Storm

Winter dibs is about whether you have temporary parking space property rights by shoveling your car out of the snow and if your self interest helps society.

How To Divide the Rent, a Cake and a Country

Assume for a moment that you have just rented a 4th floor walk-up apartment for $3000 with 2 friends. One bedroom is mid-sized and near a fire escape, the second is rather large and has a view of a magnificent…

Six Areas Where Economists Disagree With Everyone Else

A small firestorm ignited when the Chair of the President’s Council of Economic Advisers said, “Outsourcing is a growing phenomenon, but it’s something that we should realize is probably a plus for the economy in the long run.” Hearing the comment…

Job Creators or Robber Barons?

I have confessed before that I admire the entrepreneurs who have been called the robber barons. Carnegie and steel, Rockefeller and oil, J.J. Hill and railroads, Morgan and money. These men and others from their 19th century world competed lethally.…

Altitude and Attitude

A recent article in Scientific American cited a correlation between altitude and attitude. Describing four different experiments, researchers concluded that physical elevation seemed to connect to generosity, kindness, and cooperation. This is what they found: 1. At a mall, shoppers…

Do You Approve of Profits?

Two Questions: 1.How do you feel about profit? In their paper, “Is Profit Evil? Associations of Profit With Social Harm,” 3 University of Pennsylvania researchers discuss two studies that display people’s negative response to profit seeking activity. Ultimately, they conclude…