Economic Logic

Snnk cost do not matter once spent. Yet, we just cannot help thinking that if we already paid so much for something, we should rather use it...

It is sometimes difficult for a shopper to understand all the consequences of purchasing choices. Take lightbulbs, for example. The variety ...

What is the purpose of financial innovation? I would say it is to find new ways to insure against risk, to finance projects and to allocate ...

I have complained several times already that house ownership should not be encouraged by public authorities, mainly because it prevents dive...

In some countries, manufacturers are allowed to suggest to retailers how to price their goods. What does this do to prices? It may increase ...

Marijuana use is getting more and more accepted by the public and lawmakers. Indeed, many studies have shown that its effects are no worse t...

Conspiracy theorists have a field day whenever official statistics look conveniently better just before elections. Whether statistics are re...

Art is something one may like to have for the enjoyment of it, but it is also often touted as an investment vehicle. Quite obviously, you wo...

US manufacturing is on the decline, and the obvious reason is pressure from globalization. This is not necessarily bad as it means a better ...

It is difficult for politicians to have much of an impact on economic outcomes when policy is set by consensus. Any fluctuation in power cha...

We all know politicians lie, no surprise here. What we do not quite know is how and why they lie. Indeed, they generally do not tell outrigh...

In countries where some parliament chamber allocates the same number of seats to each member state regardless of its population, small state...

When we think about a social planner that maximizes welfare by assigning optimal allocations without an explicit price system, we are really...

Yes, this is the seventh year of blogging. Will I enter a a prolonged slump like some faculty do after obtaining tenure? Am I due for a sabb...

Social mobility has been much studied to understand how the poor have a shot at becoming rich and how the rich manage to preserve their stat...