VALUE PRICE marginal utility

Prada stores carry a few obscenely expensive items in order to boost sales for everything else (which look like bargains in comparison). People used to download music for free, then Steve Jobs convinced them to pay. How? By charging 99 cents. That price has a hypnotic effect: the profit margin of the 99 Cents Only … Continue reading VALUE PRICE marginal utility

The Nobel Poor

One reason to celebrate this year's prize is that it went to a woman, albeit shared with two men.  Professor Duflo is only the second ever female economist to get the chance to feel humbled by this ultimate gong. The first was Elinor Ostrom in 2009. Funnily enough, history may well judge Ostrom's work on … Continue reading The Nobel Poor