I have always read books. As I fell under the spell of a feedreader, I read less. Now, I’m back on books.
The Economic Naturalist. In Search of Explanations for Everyday Enigmas, by Robert H. Frank is an interesting read. The author poses everyday life questions and suggests possible economic explanations. I’m halfway through it.
Some questions: (offer an answer if you care to)
Standard soda cans would require less aluminum (and cost less to produce) if they were shorter and wider. Why don’t manufacturers do it?
Why are milk carton square and soda cans and bottles round?
Why are portraits on coins profile and full face on bills?
Why are minibar prices so high?
Why might a appliance retailer hammer dents into the sides of its refrigerators?
Here was one of the real estate related questions:
Why did golf driving ranges spring up all over the suburbs of Washington DC during the 1990’s?
Answer: When the market was hot, D.C. developers bought up undeveloped lots for office and apartment buildings. When the recession hit, the market was overbuilt. Vacancy rates soared as rents nosedived. Had they continued to erect the buildings, they would have remained empty for awhile. Rather than selling at a loss, many decided to wait out the downturn and put the land to some economic use. Golf driving ranges don’t take much money to run.
This loss aversion (or perception of loss, as the social psychologists see it) may explain why some sellers hold to a certain price and the house remains unsold.
What I found particularly interesting were examples of the tragedy of the commons—the consequence of unbridled self-interest— where the egotist believes his self interest will benefit the group (society) when, in practice, it does not.
A good read. What are you reading?
Ah yes books. I remember them well. blog posts on pages between two pieces of cardboard. Portabel too.
No scrolling and you can read them anywhere. I wonder— has anyone ever read a book online?