Think Economically

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Maximum understanding, minimum average total cost.

This week I have read: Patent Trolling, Cloudpaging, Santorum’s Polls, Obama’s Polls, Taco trucks, Gas and Crude Oil Prices, LEGO Monthly Mini Builds

Patents are broken

Economists, for the most part, have not yet developed the tools to think about information goods. Undergraduate econ still revolves mostly around agriculture. So what do we do about software patents? Or the sharing economy?

I got nothin’. Maybe I’ll devote some focused thought to it some time soon. By then, of course, the entire industry will have changed.

For and insider’s view on the patent wars, check out Andy Biao on his work on patents for Yahoo that have been weaponized and fired at Facebook.


Polls are broken

Political polls have been turned into the analogue to baseball statistics by Nate Silver. As someone who teaches and uses statistics, and watches politics and baseball, this has been delightful. And yet.

Nate Silver points out that Santorum has significantly outperformed his poll numbers. What to make of that? Are people disinclined to admit they’ll vote for Santorum?

That would be odd enough, but no one can figure out whether Obama is universally reviled or climbing back into the catbird seat. On net, InTrade seems to think there has been little change in Obama’s likelihood of reelection in the last six days, and so I read all that news for nothing.


Tacos are yummier from trucks?

For some reason Felix Salmon wants to know why tacos taste better from taco trucks. For some other reason, Matt Yglesias responds. My guess? Because you’re at SXSW and it’s a slow news morning? Also something about more competition, lower average total cost, etc. It doesn’t actually seem that mysterious.

The President can’t affect gas prices

In the CBS/NYTimes poll linked to above, 56% of people thought that the President could affect gas prices. He can’t. Peter Van Doren and Jerry Taylor over at Cato point this out, but if you don’t like reading words and stuff, the White House has just released a very involved, but stylish, infographic. Personally, I think they protest a little too much, with a dash of preaching to the choir.

Ultimately, James Hamilton argues it shouldn’t matter for the recovery, and IMHO, he would know. Matt Yglesias concurs.

Everything else

It was a good week for us. Personal spending is low; personal income is steady. David Brooks is apparently a Mets fan. I bought some silicone-based glue to repair a mug. Also, LEGO Monthly Mini Builds are awesome and brickset has instructions from mid-2010 onward.

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Price controls in the market for gasoline. Could Gingrich push gas prices lower? Should we actively make gas more expensive?

Gingrich says gas should cost two dollars and fifty cents. When markets and politicians disagree, the market usually wins. Still, every time gas prices creep higher, there’s political hay in claiming you can fix it.

Thomas Friedman has a whole different idea on how to handle the price of gas: push it up and let it stay there. Ivan Eland calls it mercantilism.

Some crazy guy still thinks we should peg the dollar to gold. I say crazy because that’s crazy.

What would happen to the market for gas with price controls? Check the video:

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