This is a tubelight post. Was supposed to have written this two months back. I sometimes wonder if the US Fed did the right thing by encouraging JP Morgan to buy out Bear Stearns rather than to just let the latter fail. I know letting it fail would have had significant negative impact on the…
Opportunity Costs
The concept of opportunity costs seems to be non-trivial, in the sense that most people don’t seem to get it. When I first learnt it as part of my Economics course at IIT Madras, I thought it was fairly common sense. However, looking around at a variety of people, it doesn’t seem to be that…
Oily predictions
I propose a new business model. Make a seemingly outrageous long-range prediction. It could just be anything, but you might want to stick to the financial world. Once you have decided on the prediction to make, think up of about six possible reasons why this prediction could come true. Given that the prediction in itself…
Pleasant Observations
This morning, on the way to the gym, i saw a pleasant and wonderful sight. In fact, it was a curious problem but the solution gave me hope that the average intelligence in India is not too low. It was shortly passed 7 am, and the traffic lights at South End Circle had just come…
More on petrol pricing
In a recent piece in the Indian Express, Atanu Dey argues that keeping fuel prices low is effectively delivering subsidy to the rich, by subsidising the cost of car transport. In response to this, he says there should be an annual fuel surcharge imposed per-car. This way, he says, fuel price hikes can be prevented…
Fuel price hike
So petrol prices have gone up by a whopping 10%, and LPG by an even more whopping 16%. It’s quite ironical that the government, which in the name of the aam aadmi had rolled back a number of reforms has had to do this in the final year of its reign. They say that the…
Hotel Dwaraka
In its earlier sit-down avatar on Bull Temple Road, it was known for doling out copious quantities of chutney in buckets. No sooner had you emptied half the chutney on your plate, a waiter would materialize and pour a bucket of the stuff into your plate. The main item on the menu here was the…
On introducing democracy
Ravikiran Rao argues that the reasons most Indian parties are afraid to embrace inner party democracy is that the people who are in charge are afraid that if they introduce democracy and lose the first election, their opponent might destroy the democracy and just keep the power with himself. Isn’t this the case everywhere? Be…
Ministry Formation – my theory
So Yeddyurappa has been finally sworn in as the CM of Karnataka, this time hopefully for a longer period. Some 29 people have already been sworn in with him, leaving just four more slots (there is a limit of 34 on the size of the ministry). Trouble has already started brewing as some senior leaders…
Death Markets
I wrote this in a mail to the Satin group. This was in response to a mail by Amit Varma talking about priests in Haridwar who conduct the pre-ashes-dunking ceremony, and their fees, and the bargaining, and what could be a decent solution for the problem. I thought it might make sense as a standalone…
Can I play with elasticity?
The government’s latest gimmick to keep petrol prices unrealistically low is to impose a special additional levy on income tax and corporate tax in order to finance the deficit. Basically a scheme to rob peter and pay paul. Make the higher-income guys pay for the excess oil consumption by the lower income guys.
More on pricing of air tickets
More than a week back, I had written in my blog that the airports need to change the fee structure of user charges, etc. so as to drive the marginal cost down to zero so as to ensure more efficient usage of seat space and better revenue management. It seems like I didn’t? do my…
Zoning with respect to the new airport
Now that the airport has been successfully moved, despite the vehement protests from the powerful IT-BT-ITES lobby and various others, the next fear is that these companies will move close to the new airport. As it stands now, I’m not sure how the NH7 and other roads that lead to the new airport are going…
Discounting at megamart
Megamart (the discount chain run by Arvind Brands) has a really weird discount policy. Usually, the discounting mechanism that clothing stores follow is progressive discounting – the more you buy the more discount you get. In fact, even Megamart was following this practice a few months back. “Buy one get 20% off; buy two and…
Marginal cost of flying
The problem with all these 1 rupee – 2 rupee offers in indian aviation is that they aren’t really that cheap. On top of this you have the various taxes and user charges which come up to some Rs. 1500 (I’m not sure of the exact number). What has effectively happened is that these charges…
Looking for porn in Sringeri
Now that this half-blasphemous title is out of the way, let me get straight to the point. Actually I think a bit of beating around the bush is warranted. When I read Tyler Cowen’s Discover Your Inner Economist, I wasn’t sure if i would be quoting part of this book on my blog. However, considering…
SLV Banashankari 2nd Stage
Around this time last year, I was doing a series of blog posts on delivery and revenue management practices in restaurants in Bangalore. My apologies for not updating on that series for so long. This morning I had my breakfast at SLV in Banashankari 2nd stage (near the BDA complex; opposite the park next to…
Correction
In a post I wrote a month back, I had talked about Predicatably Irrational Traffic – in which I talked about a bunch of motorists collectively jumping a signal which they deemed unfair. Now, having read “The Logic of Life” a couple of weeks back, I’m not sure the heading of that was correct. I’m…
Scrap the spending limit
There are two notable things regarding the ongoing elections in Karnataka. The first is the presence of a large number of real estate developers in the elections. The second is the virtual non-existence of corruption, rather the removal of it, in party manifestos. These two points, I believe, are not independent. Under the current system,…
Rice prices
Recently, Tyler Cowen wrote in the New York Times saying that lack of free trade in rice and growing protectionism is not a good thing from the long-term perspective. IAS Officer Gulzar Natarajan (now with the Vijayawada Municipal Corporation) took him on and elaborated as to why protectionism might be necessary. I left the following…
The met department and randomness
Ok. Nothing unusual about the title of this post. There is intuitively a lot of randomness where the met department is concerned. This post is about an editorial in the Business Standard. Now, the Indian Met department used a new process for forecasting the monsoons last year. Now, this process yielded good results in the…