Nike and Apple

Nike and Apple are teaming up to create a running shoe:

A sensor and receiver embedded in the shoe provide a wireless connection
to the iPod, with workout information stored on the device and displayed on
the screen. Runners can get audible feedback through the headphones, and
data stored on the Nano can be downloaded to a Mac or PC after a run...

..."What's cool about the Apple-Nike announcement is that the iPod is now an
application platform for personal information," said Ted Schadler, a Forrester
Research analyst, in a blog posting. "It could always store contacts and photos.
But now it can log your miles, calories, and exercise time."

I personally can't wait until iPods and cell phone merge to a larger extent than they do now.

Besides the topic I thought this article was interesting because they quoted someone from the person's blog. It is disappointing they didn't provide a link. That is something very basic that seems to be missing from any "traditional" print newpaper/magazine on the web.

Economists' Open Letter on Immigration

Alex Tabarrok of Marginal Revolution has written an open letter to the President and Congress representing the views of many economists.

I have written an open letter on immigration reflecting the consensus opinion of economists on the major issues. In cooperation with the Independent Institute I am looking for as many signatures as possible from economists and other social scientists. Brad DeLong, Greg Mankiw, Vernon Smith, Tyler Cowen and many others from both the left and the right have already signed on.

Tyer Cowen (a contributor to the same blog) posts with links to studies on the assimilation of latinos.

 

Powered By Qumana

Has Rove been Indicted?

According to a report for Truthout.org Karl Rover has been indicted on charges of perjury and lying to investigators.  This was reported Saturday, May 13th, but the story has not been reported in the mainstream media yet.  Despite criticisms the reporter has not backed down from his story.

 

Developing...

 

Powered By Qumana

Oil Prices Drop

Oil prices fell today on fears that oil prices were too high (Bloomberg, Forbes ). 

Did anybody else chuckle when they read that?

 

Powered By Qumana

Reasoned and Respectful Tone

Bush's speech tonight was masterful because he did not incite fear or attack anyone's patriotism.  As an economist and a liberal I am not in favor of sending the United States military to the border to set up walls, roads, sensors, cameras, and drone planes.  But Bush proposed this and several other points in a thoughtful and respectful manner.  He didn't piss me off which is a major accomplishment. 

This is what a President should be.  I predict this will help his approval rating.

The early headlines focus on policy:

WaPo:  Bush Will Send 6,000 Guard Troops to Border

CNN:  Bush: 'Catch and release' of illegal immigrants will end

Fox:  Bush Unveils Border Battle Plan

I think they should do a little better at pointing out the real story here.  This was a President addressing the nation in a civil manner and calling for a "reasoned and respectful tone".  I for one am a fan of this speech.

 

Powered By Qumana

Economics, Brands and Advertising

This is a topic I've been diving into over the last couple of weeks.  I found, to my surprise, that a lot of research has been done on the economics of marketing.  This was surprising because I heard very little about the topic before I began searching.  Finding this literature is reassuring because it seems to me that advertising is a huge part of our everyday economic lives, and has a huge impact on the markets we study.  How can we pretend to understand markets without explaining the role of "marketing". 

 

By far the most helpful resource has been Kyle Bagwell's survey (pdf) of the advertising literature.  He presents the theory and empirical evidence along with a historical context so you can really see how the discussion has evolved over time and where it might be headed.

 

The questions are far from answered in this field.  We do know that advertising has an immediate effect on consumers.  Advertising increases a firm's sales.  The effect is easily testable, and if it were not true we would be very surprised to see so many companies wasting money for so many years.  But beyond this fact the empirical regularizes seem to stop.  Advertising does not seem to have a consistent effect across all industries, firms, and brands. 

 

To understand whether advertising is socially beneficial or harmful we need some theory that explains why it works.  For example, if advertising works because it changes a consumer's tastes and preferences it clearly not efficient from the point of view of society.  The resources used to produce advertising would be better off put to some other use.  On the other hand, if advertising provides customers with information at low cost, or it adds some extra value to consuming the product then these expenditures could actually be improving the general welfare.

 

After doing some very basic reading I can see why marketing is not on the tip of every economist's tongue.  First, advertising doesn't have an explanation that readily presents itself in economic theory.  Advertising does not have any purpose in a perfectly competitive market where there is no product differentiation, buyers are perfectly informed, and a firm and sell as much of the good as it can produce at the market price.  Second, of the competing theories that do exist, none of them appear to be valid on all situations. 

 

This is a fascinating topic and I plan to be posting about it on a regular basis. 

 

Powered By Qumana

What is the World Coming To?

Whole foods is advertising its low prices and Wal-mart is moving into the organic foods market.

 

Powered By Qumana

Qumana Editor

I'm trying out a new blog editor now...

 

The Qumana Editor has worked perfectly since the moment I downloaded it.  I think this will greatly simplify the posting process and increase the quality of this blog. 

 

Powered By Qumana

RocketPost

This is a test post with my new blog editing software. I’ve had it crash twice on my already so perhaps this will be a short experiment.