The Theory of Contestable Markets states that when barriers to entry into a market are weak or low or in some cases non-existent, and assuming that all entrants have equal access to technology, there is a constant threat of potential entry.
Microtransactions are in-game purchases that unlock specific features or gives the user special abilities, characters or content. The purchases are virtual. The cost of these transactions can range from $0.99 to $99 (possibly even more).
Since our inaugural list of “The 25 Best Economics Podcasts Of 2016” was so well received, I’ve decided to update the list for 2017. The 2017 Best Economics Podcasts is here to provide you with a current view of some of your favorite podcasts along with the addition of a few new contenders; including those that have come highly recommended by readers.
Uber employs two different strategies to maximize how much consumers are willing to spend (i.e., capturing the excessive and otherwise unattainable consumer surplus).
In my previous post, using the nominal exchange rate we could compare the prices of iPods across countries. That was the simple version, and since it doesn’t take inflation into account, it won’t be as accurate. By calculating the Real Exchange Rate, we can get a more accurate answer to the question; which country has the cheapest iPod?
As a college student, textbooks form one of the largest percentages of expenses (excluding tuition and housing). When does it make sense to buy and when does it make sense to rent?