Quotulatiousness

September 9, 2016

Apple may learn the lesson of “option value” with the latest iPhone release

Filed under: Business, Economics, Technology — Tags: , , — Nicholas @ 03:00

Megan McArdle explains why some Apple fans are not overjoyed at the latest iPhones:

You’ve probably been thinking to yourself, “Gee, I wish I couldn’t charge my phone while also listening to music.” Or perhaps, “Gosh, if only my headphones were more expensive, easier to lose and required frequent charging.” If so, you’re in luck. Apple’s newest iPhone, unveiled on Wednesday, lacks the familiar 3.5-millimeter headphone jack. You can listen to music through the same lightning jack that you charge the phone with, or you can shell out for wireless headphones. The internets have been … unpleased with this news.

To be fair, there are design reasons for doing this. As David Pogue writes, the old-fashioned jack is an ancient piece of technology. It’s been around for more than 50 years. “As a result,” says Pogue, “it’s bulky — and in a phone, bulk = death.”

Getting rid of this ancient titan will make for a thinner phone or leave room for a bigger battery. Taking a hole out of the phone also makes it easier to waterproof. And getting rid of the jack removes a possible point of failure, since friction isn’t good for parts.

For people who place a high value on a thin phone, this is probably a good move; they’ll switch to wireless earbuds or use the lightning jack. But there are those of us who have never dropped our phones in the sink. We replace our iPhones when the battery dies, an event that tends to occur long before the headphone jack breaks. There are people in the world who take their phones on long trips, requiring them to charge them while making work calls, and they won’t want to fumble around for splitters or adapters. Some of us do not care whether our phone is merely fashionably slender or outright anorexic. For these groups, Apple’s move represents a trivial gain for a large loss: the vital commodity that economists call option value.

Option value is basically what it sounds like. The option to do something is worth having, even if you never actually do it. That’s because it increases the range of possibility, and some of those possibilities may be better than your current alternatives. My favorite example of option value is the famous economist who told me that he had tried to argue his wife into always ordering an extra entree, one they hadn’t tried before, when they got Chinese takeout. Sure, that extra entree cost them money. And sure, they might not like it. But that entree had option value embedded in it: they might discover that they like the new entree even better than the things they usually ordered, and thereby move the whole family up to a higher valued use of their Chinese food dollars.

Fire In The Sky – Zeppelin Shot Down Over Britain I THE GREAT WAR Week 111

Filed under: Europe, History, Military, WW1 — Tags: , , , — Nicholas @ 02:00

Published on 8 Sep 2016

German Zeppelins brought terror and destruction to the British homeland since the beginning of the war. But a new invention helped to bring the first one down this week 100 years ago: the incendiary bullet. The public is overjoyed as the first behemoth strikes the ground as a flaming ball of fire. At the same time an unusual calm descends on the battlefields around Verdun: Paul von Hindenburg and Erich Ludendorff visited the battlefield for the first time and are appalled by what they see.

QotD: Mussolini

Filed under: Europe, Italy, Quotations — Tags: , , — Nicholas @ 01:00

One hears murmurs against Mussolini on the ground that he is a desperado: the real objection to him is that he is a politician. Indeed, he is probably the most perfect specimen of the genus politician on view in the world today. His career has been impeccably classical. Beginning life as a ranting Socialist of the worst type, he abjured Socialism the moment he saw better opportunities for himself on the other side, and ever since then he has devoted himself gaudily to clapping Socialists in jail, filling them with castor oil, sending blacklegs to burn down their houses, and otherwise roughing them. Modern politics has produced no more adept practitioner.

H.L. Mencken, “Mussolini”, Baltimore Evening Sun, 1931-08-03.

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