Power curves and uncertainty

Some nice McK articles on thinking coming out of the credit bubble deflating.There are power curves popping up across sectors and event types. We don’t really understand these kind of curves (lots of low impact / intensity events with the occasional shocker),...

Sensible commentary on house prices

And in the Telegraph, too. House prices have to fall. Just think of the correction when interest rates get up to 4% (for example). For people paying on 0.5% now, that’s going to be an horrendous jump. Added to four-day working and suddenly people will have to...

Economics with a purpose

I have a growing fondness for experimental economics (feels more like science to me) and the fact that Google considers most of its search operations as an auction and can alter results to perform economic trials is heartening. Let’s just hope they publish some...

Galbraith Jr on the crisis

Long read, but worthwhile. My take outs: our financial models aren’t necessarily built to simulate the scale of depression we are currently in, as we haven’t experienced one for as long as the models have existed. Spending (and therefore national debt) is...

How free can’t always work

Interesting thoughts on price sensitivity and scaling of online properties: Assume for example that a service serves photos (like Flickr), and that the hosting, bandwidth and distribution costs, fully loaded, are c $0.10 per month ($1.20 per year) per person. For 100...