Pondering price theory, past and present. A weekly newsletter covering all things economics.
| Platform |  | Pricing | Only free issues | Publishes | Weekly |
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A compute tax is a REALLY dumb idea
People are freaking out about AI. That’s never a good starting point for sensible policy. So we get weird ideas.
One idea is to tax computer processing capabilities, sometimes called a “compute tax.” Andrew Yang is pushing it, so you know...
Parking, Fireworks, and Making Sense of Prices
This week, I’d like to discuss two very different topics: state firework policies and university parking. Although the topics themselves seem to have nothing to do with one another, I think that the price theoretic aspects of these topics h...
A simple approach to dynamic mergers
Two rocket companies combined to form a de facto monopoly. It was probably a good idea 🤷♂️
So, a little context. In 2006, Boeing and Lockheed Martin combined their launch divisions in a joint venture into United Launch Alliance. That’s w...
Are Giffen Goods Real?
Any student of price theory will know of the theoretical possibility of an upward-sloping demand curve (when the price of the good goes up, the quantity demanded goes up). This type of good is called a “Giffen good.”
What if demand isn’t...
You are not a horse
There’s a popular argument that AI will do to human workers what tractors did to horses. Tractors could do what horses did. Horses became obsolete. AI can do what humans do. Therefore...
And every major AI builder seems to agree that human...
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Authors
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Josh is Professor and Chair of the Department of Economics at the University of Mississippi
Using price theory to understand the world
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