Unions are against globalization. To listen to them, unions are a force for good for all workers (rather than just the workers who pay the union its dues). But to watch them, you can see that they’re in favor of cartelization. They don’t mind other people competing against them, as long as those people . . . → Read More: Unions vs. Globalization
Recently, the Organization of Petroleum Exporting Countries (OPEC) celebrated its 50th anniversary (link). The organization was founded in 1960 with the purpose of regulating world’s oil prices and controlling the supplies of oil. Currently, OPEC controls 80 percent of world’s proven oil reserves and its 12 member states oil production capacity accounts for 40 . . . → Read More: OPEC and the Logic of Cartels
In tomorrow’s episode of John Stossel’s new show on Fox Business, he will address the question, “Who is Wesley Mouch?” in speaking to the parallels between Atlas Shrugged and contemporary America. As one might expect, in my view it seems as if almost all businessmen (given their predilection towards using government to destroy markets . . . → Read More: Stossel Does Atlas Shrugged, Asks "Who is Wesley Mouch?"
Explains the Theory of Holdups and why you might not want to Patent your new Invention…..just yet. . . . → Read More: Why You Shouldn’t Patent Your Invention Just Yet
There have been concerns that, beyond the rising cost of fuel and feed, a hidden factor may be driving food prices higher: collusion among farmers, food processors, or exporters. Federal prosecutors have opened separate criminal probes into possible price-fixing by major egg producers and California tomato processors. This is the latest in a . . . → Read More: Is There Widespread Price Fixing in the Food Industry?
In my previous post, you read about Nash equilibriums and the formation of cartels. You also read about how cartels tend to be unstable and susceptible to treachery by its members.
This week we will look at De Beers – one of the most successful cartels ever. In fact, it is so . . . → Read More: De Beers – A Successful Cartel
An introduction to Nash Equilibrium and examples of how they work in Chess, and in Game theory . . . → Read More: Nash Equilibriums – Chess and the Instability of Cartels