Pondering price theory, past and present. A weekly newsletter covering all things economics.
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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...
Panhandlers and Price Theory
In my previous two posts (here and here), I focused on the role of price theory in explaining drug use. One reason that I wrote those posts is that I wanted to illustrate that price theory has explanatory power beyond the standard examples....
Pouring cold water on the waterbed effect
This week’s newsletter originally appeared on Truth on the Market, a website full of scholarly commentary on law, economics, and more.
A familiar concern in antitrust-adjacent debates goes like this: when a company such as Walmart g...
Drugs of Choice
In my previous newsletter, I asked whether Narcan saves lives. The basic price theoretic point is that Narcan reduces the cost of using opioids. Thus, some of the reduction in cost accrues to drug users who will get more enjoyment from incr...
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Authors
The writers behind this newsletter.
Using price theory to understand the world
Josh is Professor and Chair of the Department of Economics at the University of Mississippi
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