The Economics of Traffic

January 31, 2012 in Daily Bulletin

Traffic is viewed by many economists as a market failure. There is too little supply and too much demand. The New York Times looked at some of the issues involved:

  • Commuter delays are estimated to cost the United States $100 billion – $750 for every commuter in the country.
  • Attempts to solve the problem could actually make it worse:
    • Policymakers might attempt to construct new roads to more evenly distribute the traffic, but road construction leads to a proportional increase in road utilization meaning that traffic levels remain unchanged.
    • Officials might also try to increase the number of taxis available in the hopes of encouraging commuters to use those instead of their personal cars. However one expert has found that adding one taxi is the equivalent of adding 40 private cars because cabs spend so much more time on the road.
  • New York City’s plan to increase taxi traffic by 15% could cause travel speeds across Manhattan to fall by up to 12%

To read about a potential solution that has worked in other cities as well as more details about the problem, click here.

Source: The New York Times

Fascinating Facts about Twitter

January 30, 2012 in Daily Bulletin

Researchers at IBM have been analyzing twitter and have found some interesting trends:

  • Starbucks is mentioned on twitter 10 times a second.
  • Lady Gaga gains followers faster than twitter adds new accounts.
  • Wait times at airports can be predicted through twitter.
  • It’s possible to figure out where in the United States you come from just from the type of tweets you send out.
  • People are more likely to tweet something negative than positive.

Interested in twitter? You might want to follow our own twitter account, here.

To read more about the new Twitter language and what IBM intends to do with twitter data next click here.

Source: Business Insider

Via: Eve Tahmincioglu

How A Candidate’s Facial Features can determine a Presidential Election

January 30, 2012 in Daily Bulletin

Slate conducted a recent review of psychological research that looked at how a candidate’s facial features shape their Election Day outcomes, they found that:

  • For decades experts thought that the relationship was a positive correlation between handsomeness and votes.
  • More recent studies, however, have found that competence is the most important feature in drawing votes.
  • Features that suggest competence include: A square jaw, high cheekbones, and large eyes. Based on this Mitt Romney has the advantage over Newt Gingrich.
  • However voters might also determine their voting decisions based on events at the time. Researchers have found that voters have different facial feature preferences during war and peace time.
  • Voters are also more likely to vote for the candidate that looks more similar to them.

To read more about the history of research on the issue as well as see the application of these findings to recent Presidential elections, click here.

Source: Slate

Beginning of the End for the Television?

January 29, 2012 in Daily Bulletin

Nielsen, a marketing and advertising research company incorporated the latest census figures into its estimates of the prevalence of televisions in the United States. Highlights from the report include:

  • The percentage of households with a television dropped from 98.9% to 96.7%.
  • Reasons for the decline include changes in broadcast technology and the cost of owning a television.
  • The report notes that while the number of televisions has fallen, in absolute terms Americans are consuming more forms of media through platforms other than the TV, such as the internet.

Read the entire report here and find out the wider historical context of the numbers.

Source: NielsenWire

Via: Marginal Revolution

Can Retirement Kill You?

January 29, 2012 in Daily Bulletin

Slate notes that there have been a number of famous figures who have recently died soon after they retired. Can retiring kill you? Slate reports:

  • Studies suggest that it’s possible that those who retire early are likelier to die early. However it’s difficult to be sure because a lot of people who retire early often do so for health reasons.
  • If the relationship does exist then it’s speculated that this is because the everyday routine of getting up and going to work keeps you both physically and mentally fit. Losing that daily routine can hasten your mortality.
  • It’s also possible that people lose the will to live after they retire.

Read about some of the more notable people that have recently died post-retirement as well as some of the other issues that might be involved over here.

Source: Slate

The End of Academic Journals?

January 28, 2012 in Daily Bulletin

The New York Times points out that the way that researchers publish and share their work was made for a different century. In a fascinating article they note:

  • The existing process is slow and expensive. Peer review can take a long time and subscriptions costs are too high for the average consumer. It also puts a lot of power in the hands of a very small number of people.
  • “Open Science” instead leverages the qualities of the internet to create open access archives and journals. Some examples include: arXiv, PLoS, and GalaxyZoo.
  • Proponents of the new model note that the old system encourages scientists to compete with each other, while their system allows them to collaboratively work with each other and to compete with Lindsay Lohan – for competition on people’s screens.
  • The journals respond that they would love to be free and open. But they charge money for a reason: They hire editors, publishers, and expend significant resources fact checking, reviewing and fighting against plagiarism.

To read more about some of the most fascinating initiatives in the field of open science click here.

Source: The New York Times

Via: Freakonomics

The Hospitals of the Super Rich

January 28, 2012 in Daily Bulletin

The New York Times reported on Luxury Hospitals that cater exclusively to the super rich. Some of the fascinating points made in the article include:

  • Luxuries in these hospital ‘rooms’ include a personal butler, a decadent menu (that includes things such as Gelato Ice Cream), linen designed for royalty, marble bathrooms, and, panoramic windows.
  • Such hotel suites can cost anywhere between $1000 to $2400+ a day. Foreigners may be charged an additional $4,500 per day. One such luxury hospital estimates that 30% of their clients come from abroad.
  • The profits can be lucrative. One hospital owner estimated that the luxury wing brings in $3.5 million a year.

To read about the Saudi King who needed even more than these ‘standard’ luxuries as well as some of the celebrities that have benefited from such facilities, click here.

Source: The New York Times

Via: Salon

The Secrets Behind Whole Foods

January 27, 2012 in Daily Bulletin

Whole Foods, a chain of stores that for years was plagued with the reputation of selling food that was too expensive for the common man, has been attempting to change its image. The effort has been successful with the company that was in dire financial straits just a few years ago now seeing its stock price rise 38%. MarketWatch reports some of the reasons behind the success:

  • The co-CEOs have played a significant role in driving the company forwards. Their successes made them finalists for MarketWatch’s CEO of the year award. Their views on executive pay mean that no employee can receive a base salary that is more than 19 times the average salary.
  • The company has a philosophy that involves organic, healthy, chemical and pesticide free products produced in an environmentally friendly way. This philosophy resonates with the 18-30 age group that have a lot of disposable income and have driven sales forward.
  • The chain has also become more price conscious and has expanded its in-house brand called 365.
  • Whole Foods has also experimented with innovative promotions. They include in-store “value gurus” that help shoppers find personalized bargains, “madness sales” on certain products, and “Fridays Five After Five” that offered food and wine samples for $5.

To read more about some of the grovery chain’s most successful practices click here.

Source: MarketWatch

Via: Freakonomics

The End of American Foreign Oil Dependency?

January 27, 2012 in Daily Bulletin


The Economist took a look at why analysts predict that the United States will import just 36% of its liquid fuel by 2035, compared with the 60% that had to be imported in 2005. Highlights of the artcle include:

  • The reduction in the reliance on foreigners is due, in part, to a fall in American consumption of liquid fuel. By 2035 daily liquid fuel consumption is forecasted to be below its 2005 peak.
  • American consumption of liquid fuel is falling due to the post-economic crisis pace of the economy, and the high price of oil, creating an economic force that encourages conservation and substitution.
  • America’s production of oil has also expanded.

To read more about the dynamics of the market for liquid fuel in the United States and abroad click here.

Source: The Economist

The Fate that Befalls those who Name Stadiums after Themselves

January 26, 2012 in Daily Bulletin, Signature

In Practical Speculation, Niederhoffer finds an interesting relationship between companies that name stadiums after themselves and their subsequent performance. Business Insider reports:

  • Between 1990 and 2001 Companies that bought the naming rights to stadiums trailed the S&P 500 by a median of -8% in the year they named the stadium and a median of -27% three years later
  • The most notable example is Enron which purchased the Enron field in 2000. The infamous company went bankrupt two years later.
  • The author of the study suggested that this was because: “Corporations are beset by the same harmful tendencies as investors. When they are at their peak, they reach for the sun.” (Meaning that it operates on the same principle as the one that might define the relationship between skyscrapers and financial crashes )

To view a slideshow describing what happened to each company that opted to name a stadium after themselves in the 90s click here.

Source: Business Insider

Via: Newmark’s Door