Limit Pricing is a fascinating yet widely unexplored concept in economics classes. When teaching our students about how monopolists and/or firms with market power make their decision regarding output and prices, it usually follows a simple premise - firms choose the level of output to maximize profits, which occurs where marginal revenue equals marginal cost, … Continue reading Should Antitrust Agencies be Concerned about Limit Pricing?
First clarification I want to make is the understanding that this post isn’t about whether firms should or not maximize profit – which can just as well be the theme for another post. Most Micro and Macroeconomic Theory start from the premise that each firm seeks to maximize profit, which is intuitively sound and can … Continue reading DO FIRMS MAXIMIZE PROFITS?
Getting students engaged in the classroom is no easy task. We live on an overly stimulated society with probably the shortest attention span in decades. I have found that creating a dynamic experience for the classroom is the best way to keep students on their toes. Most of us are familiar with the learning pyramid … Continue reading Using Kahoot in the Classroom
This may sound to you like a pretty philosophical question, but I would like to go mathematical for a minute (bear with me)…then yeah, let’s get philosophical (because observation can only take you so far…let us reason through it too). Any intro to statistics or probability courses will start with a coin being thrown up in … Continue reading IS THE WORLD RANDOM?
This question has roots more deep than our reason can comprehend. Ultimately, it gets to the question of existence itself. Many philoshophers and scientists have battled with that very same question mark: How can it be that mathematics, being after all a product of human thought independent of experience, is so admirably adapted to the … Continue reading Was Math discovered or created?
Desde que comecei a fazer meu PhD em Economia na University of Kansas, recebi muitas perguntas acerca do processo de como fazer doutorado fora. Então, resolvi organizar a informação aqui, para que fique mais facilmente disponível a todos que desejam embarcar nesta jornada. Apesar da nossa latente crise econômica, ironicamente o Brasil não oferece bolsas … Continue reading Como fazer Doutorado em Economia no Exterior
How often do you catch yourself or somebody else saying the phrase: "I have no time". Having no time per se isn't particularly different then saying: I have no space, in which we often refer to something that doesn't fit. The whole human experience in this planet is severely underlined by the whole concept of … Continue reading The untouchable dimension “Time”
Much of the early-on Undergrad-ECON classes focus on recognizing in what consists and Economic Environment and how it affect consumer's willingness to pay for a certain good and/or supplier's willingness to exchange his good for a certain monetary value. Sometimes the way in which those introductory courses introduce this subject is disguised by the distinction … Continue reading The so called Economic Environment
Externality is an Economic concept that arises whenever private parties fail to perceive some implicit cost or benefit due to the decisions they make. Is one of the forms of "Market Failure" that we encounter in our daily lives (i.e. situations in which market allocation won't result in a socially optimal result), and the main reason … Continue reading Externality and Trees
From the assumptions in the field of Economics, one that is constantly criticized in and outside the field is rationality. Among many things of human existence, perhaps the concept of rationality is just as overrated as consistency (I won't get to my issue with consistency just yet, that's perhaps topic for another post).Rationality subdivides itself … Continue reading Bounded Rationality….We are only humans…