Author Archives: Madeleine Elliott

A Short History of Black Fridays

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Today, the term “Black Friday” is most commonly associated with the day after Thanksgiving, the so-called biggest shopping day of the year (although, according to a report by Business Insider, the 2016 the biggest shopping day in terms of sales was actually December 23, and the biggest in terms of number of customers was December 17, also known as Super Saturday–but neither of these days capture the media’s attention quite like Black Friday). This usage, however, traces back only as far as the mid-twentieth century, at which point there are multiple competing theories about how the day earned the name. Continue reading A Short History of Black Fridays→

The Economics of Media Franchises

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Movie franchises are having a bit of a moment right now. Between Star Trek, Star Wars, J.K. Rowling’s Wizarding World, the Marvel Cinematic Universe, and the DC Extended Universe, it is almost impossible to escape movie franchises. And if you did not start all of these at the beginning, good luck catching up (take the Marvel Cinematic Universe for example; there are 17 movies already). The amount of time and money required to catch up on these franchises would be quite large. Say, for example, that the average length of a movie is two hours, it would take almost a Continue reading The Economics of Media Franchises→

The Costs and Benefits of Public versus Private Broadcasting

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In the United Kingdom, you need a license to operate a television. As of April 1, 2017, a color TV license costs £147 annually and a black and white TV license costs £49.50 annually. (At the time of writing this article, the exchange rate was approximately $1.31 to £1, according to the Federal Reserve Economic Data, which puts the rates at $191.88 and $64.61 US dollars.). According to the Official TV Licensing website, a license is required for the viewing or recording of live television on any device (including traditional television sets, computers, mobile phones, gaming consoles, etc.), and anyone Continue reading The Costs and Benefits of Public versus Private Broadcasting→

Supplying into the Void: The Unusual Characteristics of the Market for Blog Posts

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Every day, content is posted all over the internet that receives little to no attention. Every day, another hopeful blogger posts another product review or anecdote or creative endeavor, only to check their blog stats and find no record of visitors. And yet, many bloggers just keep posting. This is not a plea for more readers to come to this blog (although that certainly would not be unwelcome), but a simple statement of fact. The market for blog posts is not in equilibrium; there is a surplus, and it grows larger by the day. How is this possible? Why does Continue reading Supplying into the Void: The Unusual Characteristics of the Market for Blog Posts→

Life on the Margin: How to Make Optimal Decisions and Maximize Utility

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Anyone who has taken an introductory Economics course has probably heard that optimal decisions are made at the margin. This is a foundational concept in Economics, but it can be confusing for those who are unfamiliar with Economics jargon. What is the margin? How do you know if a decision is optimal? Here is an example to illustrate the concept: Consumer A has some free time and wants to figure out how to spend it. A new episode of a television show she likes has just become available to stream. It would take an hour of her time to watch Continue reading Life on the Margin: How to Make Optimal Decisions and Maximize Utility→

Tesla’s Battery Update: Price Differentiation Tactics Revealed

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In early September, 2017 the car manufacturer Tesla released an update that would extend the battery life of some models of its cars for customers in the hurricane Irma evacuation zone. According to a report by NBC News, the update would give owners of certain Tesla models the ability to drive an additional 30 to 40 miles without needing to charge. The aim of the upgrade was to help people escape the effect of the hurricane during a period when electricity and time for charging would be difficult to come by. Initially, this upgrade appears to be a great benefit Continue reading Tesla’s Battery Update: Price Differentiation Tactics Revealed→

The Market for B-Movies

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Last summer marked the release of the fifth movie in the Sharknado franchise. The film series, which involves a cyclone that picks up vicious sharks and carries them around a terrified city, checks many of the classic B-movie boxes, including low budget, relatively unknown actors, outlandish plot, and special effects that require a high suspension of disbelief. Much of the publicity that surrounded the release of the first Sharknado movie was negative, and it continues to be negative. As of September 2017, the movie holds an unfavorable rating of 3.3 out of 10 on IMDb. How, then, are there five Continue reading The Market for B-Movies→

Turning the Tables on the Vinyl Revolution

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Recently, Sony Music announced that it would resume production of vinyl LPs, an operation the company halted in 1989, according to a report by CNN Money. The reason for that 1989 stop? Compact discs, which had taken over the market for audio recordings so completely as to render vinyl obsolete as far as Sony was concerned. Now, as digital music and streaming are rising in popularity and the death of CDs is being proclaimed (sensationally and, perhaps, prematurely) by sources including Time and The Atlantic, vinyl is coming back. Initially, it would appear that the production of new vinyl records Continue reading Turning the Tables on the Vinyl Revolution→