Who really has influence over government policy? * Some Princeton researchers have analyzed policies and influence, finding that:
"Multivariate analysis indicates that economic elites and organized groups representing business interests have substantial independent impacts on U.S. government policy, while average citizens and mass-based interest groups have little or no independent influence"
Shocking, right? A long read, but for all the political science scholars out there, very interesting.
*hint: if you have to ask this, you don't
Go with the stream? Spotify has hit 10 million users, however, streaming will never be profitable. This arrangement doesn't seem to bode well for anyone other than the consumer. Spotify remains strongly ahead of Beats in the streaming market (~10 mil paying customers to Beats' 100-120k), though the Beats - Apple partnership could do wonders for Beats' streaming service.
Speaking of Beats, the guy who designed the Beats headphones received $30,000 & a nice sushi lunch before being sent on his way. Some have expressed their skepticism on the wisdom of the potential Beats-Apple deal, but I personally see it as a great move. Apple can now stick the metaphorical knife in their competitors who have been touting Beats Audio as a selling point (I'm looking at you, HTC & HP). Both companies are masters of brand recognition & getting people to pay a lot for something that cost very little to make. Just think of the partnership possibilities! Apple headphones right now: $29. Apple headphones with Beats Audio: $50? $100?
There's science behind being a wingman. Collaborative mating, apparently animals do it too.
"These findings have clarified several truths: we lie to make our friends look better, we utilize cooperative courting techniques to “break barriers” (or, if you’re a female, to put them up), and, most importantly, our dating rituals are no more advanced than those of wild turkeys."
Why am I not surprised?
More feminine women are more attractive to men, but only in healthier countries. A study indicates strong correlations between men's attraction to feminine vs masculine faces and country health. Strangely enough, men in unhealthy places prefer more masculine-looking faces, while those in healthy locations attracted more towards feminine ones.
Popular mobile payments app Venmo enjoys the benefits of behavioral economics biases, causing users to feel less pain from spending money. Learn how it works, and how businesses can capture the "Venmo effect".
Deep-dive into the increasingly personal way we interact with brands, fueled by Snapchat and Instagram.
Some musings on the benefits of the changing cultural consumption landscape (including the shift to streaming of music and TV).
Females are prescribed psychiatric drugs at much higher rates than men. Females also tend to be more emotional (wide generalization). Processing emotions takes time, and time spent on emotional work is time NOT spent generating revenue. Ultimately, the trend of medicating female emotion (and emotion in general) is a money-driven one.
The Internet of Things (IoT) is the future of technology, but also represents some interesting economic phenomena not-so-frequently seen.
We all hate surge pricing, but it's a great way for Uber and its drivers to capture more value. What if GrubHub, Starbucks, etc. charged customers more during peak hours in order to pay service workers better? Could we ever break the cycle of reliance on cheap labor?
Price discrimination is a way that companies can make more money by understanding how much different consumers will pay for the same good. Here's how it works.
What's the economic explanation behind the rise of the term "basic"? Is this a new phenomenon, or merely a quality of human nature evident due to economic and technical changes?
Would you pay $35 for a Raspberry Pi? No, not the food, it's a miniature computer! This device can be revolutionary for the 75 million Americans without internet access.
Do you ever forget the difference between nominal and real? Do you wonder why financiers analyze Yellen's words like a text from a crush? If so, this is the article for you!
When fruit flies, it fails. Industrial agricultural practices have brought us berries in January, but at the cost of quality. Read about why harvesting heirloom varieties is important for taste, small farmers, and the environment.
It used to be that the strongest hunter had the most value in society. Today, the nerdy ideas man has the most worth. What happened?
Innovation is cyclical and inspired by other innovation. For example, this article was inspired by my purchase of innovative new ice cube trays. Read about how product variety is created, and how it can be a bad thing.
You may hear the terms horizontal and vertical integration tossed around in business (Businesspeople love fancy strategy terms). Learn how Standard Oil used integration to become a monopoly and how one might benefit from integration today.
Will a big engagement ring buy you happiness? What about donating blood? How do you properly motivate someone? If you are looking for a job, is city size a factor? Why are smartphones important for the poor to have? All this and more.
America is in trouble if the cost of Third World labor increases. As has been the tradition for all of human history, our economic success depends on the accessibility cheap and near-slave labor. How can we grow when this ends?
Some would claim that it is human nature to capitalize upon opportunities. Arbitrage was born of this human urge to take advantage of money-making opportunities.
Efficient appliances seem like a great way to reduce our energy use, right? Wrong - in the long run, they end up causing massive increases in energy use due to cost reductions.
"Run out of oil? Never!"
In all likelihood, this won't transpire, but if you aren't familiar with the idea of peak oil (or like to deny it), answer all your questions here.
Most people could tell you that oil and energy is critical to our economy and planet. In fact, energy is the foundation of all growth, but it isn't included in our economic models. Here's why the discipline of economics needs to be re-organized.
This edition of Deciphering Data brings you the answers to all these pressing questions and more:
- At what time of year do most break-ups happen?
- Why are tiger-moms a thing in the US and China?
- How do different people around the world think success happens?
The rise of American affluence gave us the luxury of choice and ability to be picky about what we like. Combined with newly formed marketing and advertising industries, consumer preferences developed that made perfect substitutes an economic unicorn. (If you don't know what a perfect substitute is, no worries, read on!)
Indifference curves are not graphs of who cares less, rather, they show different combinations of goods that can give a person a certain level of utility, or well-being.
Do middleman apps make our lives better? What about the lives of their employees? Do Uber-like services improve consumer welfare? How do recessions affect birth rates? Why does the US have relatively high infant mortality?
Find the answers to all these questions and more.
Does this man look like he is substituting or complementing these apples? Trick question: apples are inanimate, and can't be complimented.
The best data visualizations from around the web. Learn about online dating, music tastes, political preferences, violence, and earthquakes.
Did you know that higher gas prices might be better for us all? Industrialism is great, but creates negative externalities, such as pollution. Pigovian taxes reduce negative externalities and aim to also reduce distortionary taxes, like income tax. Win-win!
Don't be like this guy and let your money sit in the bank. Start investing with some simple tips!
Money represents a social agreement, which has implications for how we value wealthy people. Bitcoin replaces the need for this social agreement with technology, and in doing so challenges the values we ascribe to wealth.