Tag: Equilibrium Compatibility
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Communicating Probability Margins in Economics
Economists spend a lot of time talking about some margins of adjustment, such as quantity, quality and price. Other margins are rarely discussed formally, such as the likelihood that a stock price will rise tomorrow (or next year) or the probability that a natural disaster is so bad that it causes a “hundred-year flood”. A…
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Ticketmaster Monopoly Ruling: A Law and Economics Perspective
A couple of weeks ago, the media reported that a jury had found Ticket Master (and Live Nation) guilty of being an illegal monopoly. The media quoted people on the street who said the obvious: “I am looking forward to paying lower prices for concert tickets.” Yet, there is no cartel amongst concert promoters (that…
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How Global Conflicts Impact Gas Prices in Canada and the US
Why would a war on the other side of the world raise oil and gas prices in countries, such as Canada and the United States, that are net exporters? The explanation is both simple and has profound implications for behaviour and for government policy.
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Understanding Market Shortages: Oil, Concert Tickets, and College Basketball
Economists often talk about how markets adjust to shocks with relative ease. Recent news offers three prominent examples of markets with excess demand: world oil and gas, reselling concert tickets, and college basketball. These examples are newsworthy for the same reason even if the “solutions” differ. Not everybody is happy with the “solutions” and that…
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Exploring New vs. Used Car Market Trends
The car market is evolving with increasing average vehicle ages and rising prices for new cars, now averaging about $50,000. Consumers are keeping cars longer, possibly due to costs, while the used car market shows different price trends. Dealers benefit from this shift, focusing on maintenance, but market dynamics remain complex.
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Improving your Financial Literacy: Fear, Greed and Investing
November is Financial Literacy Month. When reading financial news recently, you see that many commentators worry that stock prices are too high but the advice is often vague. So, you may wonder, how can “I” become literate if the “experts” appear confused? You should learn what to focus on when making decisions in a market.
5 Basic Principles of Economics 