Ged Carroll

Category: economics | 經濟學 | 경제학 | 経済

Economics or the dismal science was something I felt that I needed to include as it provides the context for business and consumption.

Prior to the 20th century, economics was the pursuit of gentleman scholars. The foundation of it is considered to be Adam Smith when he published is work An Inquiry into the Nature and Causes of the Wealth of Nations. Smith outlined one of the core tenets of classical economics: each individual is driven by self-interest and can exert only a negligible influence on prices. And it was the start of assumptions that economists model around that don’t mirror real life all the time.

What really is a rational decision maker? Do consumers always make rational decisions? Do they make decisions that maximise their economic benefit?

The problem is that they might do actions that are rational to them:

  • Reducing choice when they are overwhelmed
  • Looking for a little luxury to comfort them over time. Which was the sales of Cadbury chocolate and Revlon lipstick were known to rise in a recession
  • Luxury goods in general make little sense from a ration decision point of view until you realise the value of what they signal
  • Having a smartphone yet buying watches. Japanese consumers were known to still buy watches to show that they care about the time to employers when they could easily check their smartphone screen

All of which makes the subject area of high interest to me as a marketer. It also explains the amount of focus now being done by economists on the behavioural aspect of things.

  • Siberian meteor burst + more

    Siberian meteor burst

    I know that there have been 500 people with minor injuries, but  the Siberian meteor burst felt like I was living in a Jerry Bruckheimer film. The best observation I saw about it was in Vice magazine’s email newsletter which asked why so many drivers in Russia had managed to film the asteroid rather than keeping both hands on the wheel? The reason for the multiple recordings of the Siberian meteor burst is driver cams used to help with car accident disputes. The Siberian meteor burst brought back memories of the Tunguska event in 1908 which levelled large swathes of Siberian forest.

    Business

    “Physically Together”: Here’s the Internal YHOO No-Work-From-Home Memo | AllThingsD – I could see a post coming on from Becky McMichael about the benefits of remote working and flexible hours etc etc

    PrivCo | LIVINGSOCIAL $110M Debt Infusion From Existing Investors With Oppressive Terms – I wonder what implications this will have for GroupOn

    Consumer behaviour

    HBO: The Weight of the Nation interesting site on obesity in the US

    Culture

    So there has been extensive character redesigns and different actors will be voicing some of the main protagonists, but I am super-excited that Production I.G are returning with another installment in the Ghost In the Shell series of anime. Arise looks amazing judging by the trailer footage now available on YouTube. More Japan related content can be found here.