Tag Archives: economics

Rich get richer

Do the rich get richer? What are the mechanisms which aid, or oppose such a phenomenon, under normal circumstances? Money: Since money is a requirement for various endeavours, the rich have more options at hand. They can take the costlier … Continue reading

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Advisor-Supplier conflict-of-interest

Would you trust a doctor whose clinic also has a pharmacy? The problem is that he is incentivized to prescribe drugs, and further, brands which his pharmacy usually stocks. As it is, doctors are incentivized to: (a) prescribe tests and … Continue reading

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Gains and Losses

Let’s say that on a particular day, you are in a calm state of mind. Neither too happy, nor sad. Suddenly you are notified that you have been selected for an award of Rs. 10,000. The award is genuine, there … Continue reading

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Travel Pricing

Let’s look at a simple example of travel pricing. Say there is a train route from Bangalore to Mumbai. Tickets are two way, for simplicity, with the onward journey on Friday, and the return journey on Sunday. Such tickets are … Continue reading

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Analysis of an Ad

If you have something to sell, you need to draw buyers to your stores. Ads are one way to do this. Say you wanted to advertise your brand to people in your city. The first thing that comes to mind … Continue reading

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Price Discrimination

The selling price of a good is set by, among other things, supply and demand. Normally, we would expect a seller to sell a good at the same price to all buyers. Price discrimination refers to a situation where a … Continue reading

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Transportation

City traffic is tough to live with. Almost all major cities of the world suffer from congestion on the road. A majority of commuters in Bangalore spend around 1.5 to 2 hours everyday commuting to and from work. Any economist … Continue reading

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