Economic Basics

Purchasing Power Parity (PPP) Explained

Purchasing Power Parity (PPP) Explained

Purchasing power parity (PPP) is a theory developed by Gustav Cassel, a Swedish economist in 1918.

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Filed in Economic Basics by on July 21, 2014 0 Comments
Game Theory: The Paradox of Collective Action

Game Theory: The Paradox of Collective Action

The Paradox of Collective Action is a situation where more than one party is involved in an action but they fail to reach a better Nash Equilibrium because of the free-rider and information problem.

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Filed in Economic Basics by on July 19, 2014 0 Comments
Third Degree Price Discrimination Explained

Third Degree Price Discrimination Explained

Third-degree price discrimination is a pricing strategy which involves a firm charging different market segments different prices for the same good.

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Filed in Basic Concepts by on July 9, 2014 0 Comments

Economic News and Opinion

Asia’s problems and the West’s opportunities

Asia’s problems and the West’s opportunities

Displays of upheaval and state breakdown in global politics are not particularly rare, but the number of missed opportunities for dealing with these issues has been shamefully high in recent months. It’s easy to say that no one is to blame; after all there was Syria to deal with. And then Ukraine, Gaza, and now […]

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Filed in Economic News and Opinion by on August 16, 2014 0 Comments
Chancellor Osborne, a Rise In GDP Per Capita Is a ‘Major Milestone’ Not an Increase In GDP

Chancellor Osborne, a Rise In GDP Per Capita Is a ‘Major Milestone’ Not an Increase In GDP

The Chancellor has heralded the latest GDP figures as a ‘major milestone’ in his long-term plan for the economy. Figures released by The Office for National Statistics (ONS) illustrate that the economy grew by 0.8% in the second quarter of the year – a 0.2% increase on the pre-crisis statistics recorded in the first quarter […]

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Filed in Economic News and Opinion by on August 13, 2014 0 Comments
Licensing and Rent Dissipation

Licensing and Rent Dissipation

Referring to my last article (Gondola Licence and transaction costs), I have discussed the relationship between licensing, information cost and price discrimination. My friend kindly pointed out that I have missed out one important constraint – Rent dissipation. In this article, I shall explain how licensing can restrict the dissipation of rent. Rent Dissipation occurs when […]

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Filed in Economic News and Opinion by on August 11, 2014 0 Comments

Economic History

Forgotten Violent Actors: Privateers

Forgotten Violent Actors: Privateers

Not nearly as famous as pirates, or as infamous as mercenaries, privateers have become a largely forgotten phenomenon of the pre-modern world. Of course, this is a debatable opinion, since most history students would agree that privateering constituted a major element of global trade and military conflicts for nearly 400 years.

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Filed in Economic History by on December 2, 2013 0 Comments
The First and Second Bank of the United States – A History of Central Banking

The First and Second Bank of the United States – A History of Central Banking

The Hamiltonian banks The United States’ Federal Reserve is undoubtedly one of the most important economic and financial institutions in the US and like all institutions of such importance it is easy for mainstream discourse to take it for granted. To forget the history of central banking in the US however would entail a dangerous […]

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Filed in Economic History by on October 26, 2013 2 Comments
Opportunity Costs in Frederic Bastiat’s Broken Window

Opportunity Costs in Frederic Bastiat’s Broken Window

While in contemporary Economics the notion of opportunity costs is usually a foregone conclusion in calculations of various economic scales, it is a surprisingly recent addition to the subject area.

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Filed in Economic History by on October 7, 2013 0 Comments

Economic Biographies

John Forbes Nash, Jr. (1928 – )

John Forbes Nash, Jr. (1928 – )

John Forbes Nash Jr. is an American mathematician and co-recipient of the 1994 Nobel Prize in Economics for his work on game theory. He is also the subject of the 2001 film ‘A Beautiful Mind’.

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Filed in Economic Biographies by on July 14, 2014 0 Comments
John Maynard Keynes (1883-1946)

John Maynard Keynes (1883-1946)

John Maynard Keynes (1883-1946) was a British economist most famous for a set of ideas regarding macroeconomics that would eventually coalesce into the Keynesian economics school of economic thought and theory.

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Filed in Economic Biographies by on February 13, 2014 0 Comments
Milton Friedman (1912-2006)

Milton Friedman (1912-2006)

Milton Friedman (1912-2006) was an American economist, famous for his writings that formed the basis of the monetarist macroeconomic policy that opposed Keynesianism.

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Filed in Economic Biographies by on September 10, 2013 0 Comments

Most Recent Articles

Asia’s problems and the West’s opportunities

Filed in Economic News and Opinion by on August 16, 2014 0 Comments
Asia’s problems and the West’s opportunities

Displays of upheaval and state breakdown in global politics are not particularly rare, but the number of missed opportunities for dealing with these issues has been shamefully high in recent months. It’s easy to say that no one is to blame; after all there was Syria to deal with. And then Ukraine, Gaza, and now […]

Continue Reading »

Chancellor Osborne, a Rise In GDP Per Capita Is a ‘Major Milestone’ Not an Increase In GDP

Filed in Economic News and Opinion by on August 13, 2014 0 Comments
Chancellor Osborne, a Rise In GDP Per Capita Is a ‘Major Milestone’ Not an Increase In GDP

The Chancellor has heralded the latest GDP figures as a ‘major milestone’ in his long-term plan for the economy. Figures released by The Office for National Statistics (ONS) illustrate that the economy grew by 0.8% in the second quarter of the year – a 0.2% increase on the pre-crisis statistics recorded in the first quarter […]

Continue Reading »

Licensing and Rent Dissipation

Filed in Economic News and Opinion by on August 11, 2014 0 Comments
Licensing and Rent Dissipation

Referring to my last article (Gondola Licence and transaction costs), I have discussed the relationship between licensing, information cost and price discrimination. My friend kindly pointed out that I have missed out one important constraint – Rent dissipation. In this article, I shall explain how licensing can restrict the dissipation of rent. Rent Dissipation occurs when […]

Continue Reading »