In Praise of Deflation

First, some neo-Keynesian nonsense:

It’s counterintuitive that falling prices can be bad. After all, nobody ever complained about stuff being cheaper. The problems, though, are twofold. First, if prices fall across the board, so too will wages — but debts won’t. Borrowers will have a harder time making their payments. More of them will . . . → Read More: In Praise of Deflation

We Are All Economists

We all use economic principles in our daily lives, even if we don’t realize it or know that someone has given them names. Like the laws of physics, ignoring them or passing laws or having good intentions doesn’t change them in any way. Actions always have consequenses. . . . → Read More: We Are All Economists

Scarce Resources

Assuming the continuance of free people and free markets, the trend toward less scarcity and lower real prices of all resources will continue, as it has from the beginning of human civilization. . . . → Read More: Scarce Resources

Thoughts on Game Theory: Why Do Restaurants Serve My Food to Everyone?

Find out how restaurants serve everyone each other’s food in order to increases their profits! . . . → Read More: Thoughts on Game Theory: Why Do Restaurants Serve My Food to Everyone?

How to Get People to Buy What They Don’t Want

This article follows up on an earlier article on how to price your products in such a way that people end up paying the maximum amount that they are willing to pay for it, instead of paying only what is mentioned on the price, or not buying it at all. . . . → Read More: How to Get People to Buy What They Don’t Want

Supreme Court Paves Way for a New Era of Price Fixing

In 1911, Dr. Miles Medical Co, a maker of relaxants and other medicines, sued a distributor, John D. Park & Sons Co., for selling at cut rate prices. The company lost the case when the Supreme Court held that it was trading too close to cartel-like trading. The judgment in the case Dr. Miles . . . → Read More: Supreme Court Paves Way for a New Era of Price Fixing

Pricing Dilemmas: How to Charge the Most for Your Product

Setting a price on your product or service can be one of the most difficult decisions a marketing manager can make. Different people value your product differently. Most of the time, it is impossible to get accurate information regarding the percentage of your target market that are willing to pay a certain price . . . → Read More: Pricing Dilemmas: How to Charge the Most for Your Product