From the Harvard Business Review Blog Network, a great piece on pricing strategies in the industry for gaming consoles. In particular, the article describes Sony’s over-pricing of the PS3 at launch in 2006 – and Microsoft’s potential repeating of this mistake with this year’s $500 XBox One. A good read for gamers and economists alike!
A little late for the Thanksgiving deluge of talks on being grateful, but powerful nevertheless.
Nate Silver describes his approach to forecasting – an approach much more widely applicable outside of forecasting in my view: In the most competitive industries, like sports, the best forecasters must constantly innovate. It’s easy to adopt a goal of “exploit market inefficiencies.” But that doesn’t really give you a plan for how to find […]
Crunch of the semester over the last couple of weeks. Regular blogging will pick back up after the Thanksgiving break!
From the wonderful tumblr Econlolcats:
In Simpler, Cass Sunstein sets the behavioral economics stage by framing the impacts of either staying the course or effortfully taking an action. Often, the choices we make can be thought of as either “do nothing” (and stay the course) or “do something” and decide to engage in a particular action. So the decision to eat a brownie might […]
Ben Blatt at Slate uses game theory and statistical analysis to give some compelling winning strategies for every game on The Price Is Right. From bidding in the opening round (auction theory), to playing each game (dynamic game theory and much more) and spinning the big wheel. So if you are planning on hanging out with […]