Quotulatiousness

September 18, 2012

New chapter from The Undercover Economist available for free download

Filed under: Books, Business, Economics, Media — Nicholas @ 11:16

If you read the first edition of Tim Harford’s excellent book The Undercover Economist, you might be interested in reading the new chapter he added for the second edition. For those of us who bought the first edition, he’s made the new chapter available for download:

The second edition of The Undercover Economist was published last year in the UK, and recently as an eBook in the US.

The biggest change from the first edition was a new chapter about the financial crisis. Lots of people have written to ask whether they can get this chapter without buying the entire book again. That seems only reasonable, and you can now download it here. Enjoy.

Publishers hit libraries with big ebook price hike

Filed under: Books, Business, Media, Technology — Tags: — Nicholas @ 07:49

Techdirt has the details:

Publishers are at it again, levying what amount to economic sanctions against that infamous freeloader hangout, The Library. In a move that will endear it to exactly no one, Hachette is increasing its back catalog prices 220% for ebooks, sticking it to the cherished public institutions whose shelves (including the digital ones) are lined with nothing but Lost Sales (apparently).

Hachette has been hard at work dragging its reputation through the mud. You may remember it from a few weeks ago, when it greeted Tor’s announcement that it was going DRM-free with “HAHAHA but no, seriously, there will be DRM.” This move seems ill-advised at best, what with some authors banding together to offer their titles to libraries for $dirt cheap, a price that falls more in line with the economic realities of the average library.

Hachette isn’t the only publishing fish in the sea (and not even the only fish to jack up its prices — Random House dialed its prices up 300% in March). Hachette is one of several publishers, many of whom haven’t increased prices (or at least, not as severely). Of course, other publishers have gone other routes, including limiting the number of lends on their ebooks, making their digital offerings the equivalent of poorly manufactured physical books (Falls Apart After 26 Uses!). As a whole, the Big Six treat libraries like an intrusive vagrant.

September 17, 2012

The chilling of free speech: corporate defamation suits

Filed under: Australia, Business, Cancon, Law — Tags: , , , — Nicholas @ 13:07

An interesting article in the Toronto Star looks at the idea of reducing the ability of corporations to launch SLAPP lawsuits against private citizens:

Fed up with suits like this (sometimes called Strategic Lawsuits Against Public Participation, or SLAPPs), Australia changed its laws to prevent most corporations from being able to sue for defamation. Canada’s provinces should do the same.

Canada is no stranger to SLAPPs. For example, when Mark Prince created a website inviting people to describe their customer service experiences with Future Shop, he was threatened with a defamation suit. On the advice of a lawyer, Prince shut the site down. It wasn’t that what he’d done was necessarily defamation, but it would simply have cost too much to defend himself.

Cases like this highlight the fact that defamation is easy to allege and hard to defend. Those who claim to have been defamed need only prove that the defendant published something about them to at least one other person, and that a reasonable person would think less of them as a result. Plaintiffs do not have to prove they suffered any actual loss to their reputation, or that the statement was false. Instead much of the burden falls to defendants to prove a defence, such as that the statement was true.

As a result, most people will retract or apologize, even if a statement is true, rather than spend a small fortune defending their right to say it. This chilling effect doesn’t only affect individuals; the news media’s publishing decisions are also influenced by defamation law.

H/T to Bob Tarantino for the link:

September 16, 2012

Nebraska: same penalty for manslaughter and for operating a business without a license

Filed under: Bureaucracy, Business, Law, USA — Tags: , , — Nicholas @ 00:05

Nebraska sure is harsh on people who operate unlicensed businesses. Or they’re really soft on those who commit manslaughter:

The libertarian public-interest law firm Institute for Justice reports on one of the most insane, inane, and profane prosecutions in all-time memory.

Karen Hough is a long-time practitioner of “equine massage,” which supposedly is beneficial in all sorts of ways to the animals in question.

[. . .]

A few weeks later, she received a letter from Nebraska’s Department of Health and Human Services ordering her to “cease and desist” from the “unlicensed practice of veterinary medicine.” In Nebraska, continuing to operate a business without a license after getting a cease and desist letter is a Class III felony. So Karen could face up to 20 years in prison and pay a $25,000 fine. By comparison, that’s the same penalty for manslaughter in the Cornhusker State.

Nebraska isn’t a place that shows up in the news very often: I’ve posted nearly 5,000 entries here at the blog, and this is the first time I’ve needed to tag anything “Nebraska”.

September 11, 2012

Manufacturers may follow the music industry pattern

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

An interesting article in The Economist:

As an expert on intellectual property, Mr Weinberg has produced a white paper that documents the likely course of 3D-printing’s development — and how the technology could be affected by patent and copyright law. He is far from sanguine about its prospects. His main fear is that the fledgling technology could have its wings clipped by traditional manufacturers, who will doubtless view it as a threat to their livelihoods, and do all in their powers to nobble it. Because of a 3D printer’s ability to make perfect replicas, they will probably try to brand it a piracy machine.

[. . .]

As with any disruptive technology — from the printing press to the photocopier and the personal computer — 3D printing is going to upset existing manufacturers, who are bound to see it as a threat to their traditional way of doing business. And as 3D printing proliferates, the incumbents will almost certainly demand protection from upstarts with low cost of entry to their markets.

Manufacturers are likely to behave much like the record industry did when its own business model — based on selling pricey CD albums that few music fans wanted instead of cheap single tracks they craved — came under attack from file-swapping technology and MP3 software. The manufacturers’ most likely recourse will be to embrace copyright, rather than patent, law, because many of their patents will have expired. Patents apply for only 20 years while copyright continues for 70 years after the creator’s death.

[. . .]

In that, the record industry was remarkably successful. Today, websites and ISPs have to block or remove infringing material whenever they receive a DMCA takedown notice from a copyright holder — something that happens more often than actually justified. Google reckons that more than a third of the DMCA notices it has received over the years have turned out to be bogus copyright claims. Over a half were from companies trying to restrict competing businesses rather than law-breakers.

Rallying under the banner of piracy and theft, established manufacturers could likewise seek to get the doctrine of “contributory infringement” included in some expanded object-copyright law as a way of crippling the personal-manufacturing movement before it eats their lunch. Being free to sue websites that host 3D design files as “havens of piracy” would save them the time and money of having to prosecute thousands of individuals with a 3D printer churning out copies at home.

September 10, 2012

The non-romantic reality of a book tour

Filed under: Books, Business, Media — Tags: , , , — Nicholas @ 07:54

Poor Charles Stross has experienced one-too-many book tours. It’s so not conducive to anything like comfort or a normal life:

A book signing tour sounds romantic, but actually it’s not. It’s like one of those cheap package holidays in which you get to tour South America or Europe in seven days. Each day you have to get out of bed at dawn or earlier and head to the airport for another cavity search and economy-class ticket to a new city. When you arrive, a new guide meets you in, shovels you into their car, and then takes you on a whistle-stop tour of sights of the city. (On a tourist tour, it’s museums or monuments; on a signing tour, it’s bookstores, where you render the stock non-returnable by defacing it with your signature.) You might be allowed to dump your bag in a hotel room if timing permits. The hotel room will be luxurious and expensive and you will spend so little time awake in it that it seems like a cruel joke, because your time will be programmed so tightly you barely have a chance to eat. It is possible that you will be dragged in front of microphones or cameras to answer confused or confusing questions by journalists who haven’t read your book; then, each evening, you will show up at a bookstore where hopefully there will be an audience who will listen to you deliver a canned speech and/or reading and then buy books which you will then sign. And you will have to be nice to everybody, on pain of potentially not getting another tour (which might sound like a blessing in disguise until you work out what’s going to happen to your income thereafter). Finally, your head hits the pillow around 11pm — don’t forget to check in for tomorrow’s exciting anal probe and air-sickness theme-park ride! — for as much as five or six hours’ sleep.

But then, the nightmare thought: a book tour reality TV show

September 7, 2012

“When I discover something surprising in data, the most common explanation is that I made a mistake.”

Filed under: Business, Economics, Government, Media — Tags: , , , — Nicholas @ 08:20

John Kay suggests you always ask how a statistic was created before you consider what the presenter wants you to think:

Always ask yourself the question: “where does that data come from?”. “Long distance rail travel in Britain is expected to increase by 96 per cent by 2043.” Note how the passive voice “is expected” avoids personal responsibility for this statement. Who expects this? And what is the basis of their expectation? For all I know, we might be using flying platforms in 2043, or be stranded at home by oil shortages: where did the authors of the prediction acquire their insight?

“On average, men think about sex every seven seconds.” How did the researchers find this out? Did they ask men how often they thought about sex, or when they last thought about sex (3½ seconds ago, on average)? Did they give their subjects a buzzer to press every time they thought about sex? How did they confirm the validity of the responses? Is it possible that someone just made this statement up, and that it has been repeated frequently and without attribution ever since? Many of the numbers I hear at business conferences have that provenance.

[. . .]

Be careful of data defined by reference to other documents that you are expected not to have read. “These accounts have been compiled in accordance with generally accepted accounting principles”, or “these estimates are prepared in line with guidance given by HM Treasury and the Department of Transport”. Such statements are intended to give a false impression of authoritative endorsement. A data set compiled by a national statistics organisation or a respected international institution such as the Organisation for Economic Co-operation and Development or Eurostat will have been compiled conscientiously. That does not, however, imply that the numbers mean what the person using them thinks or asserts they mean.

Jesse Kline: Consumers the biggest losers in Apple-Samsung battle

Filed under: Business, Law, Technology — Tags: , , , , — Nicholas @ 00:07

In the National Post, Jesse Kline points out that the grubby legal dispute between Apple and Samsung may end up hurting the consumer much more than either of the combatants:

Software is unique because it is covered under both copyright and patent law. Computer software is written in a human-readable language, called source code, that is then translated by the computer into something the machine can understand. Much like writing a book, or newspaper article, source code is automatically covered under copyright law.

But no one is alleging that Samsung copied Apple’s code. What Samsung was sued for was achieving the same outcome as Apple, even though it was done in a different way. In this literary world, this would be akin to someone being sued for violating the copyright on Harry Potter, just because they wrote their own story about a boy wizard.

Intellectual property laws are supposed to encourage innovation by allowing companies and individuals to profit off works that may have cost a significant amount of money to develop. Apple says it was undercut in price because its competitor simply copied its design. In actual fact, Android was cheaper to produce because it is based on the open source Linux operating system, which saved money compared to Apple proprietary system.

For its part, Samsung accuses Apple of resorting “to litigation over market competition in an effort to limit consumer choice.” It’s one thing for the legal system to protect new inventions and original works, but this is quite clearly a case of a company engaging in anti-competitive behaviour.

September 3, 2012

Volokh on the GOP “war on porn” platform plank

Filed under: Business, Media, Politics, USA — Tags: , , , , — Nicholas @ 12:46

At the Volokh Conspiracy, Eugene Volokh points out that aside from satisfying a checklist item for some constituencies, the GOP’s stated intention to crack down on pornography just doesn’t have a lot of benefits:

As we know, there’s lots of porn of all varieties out there on the Internet, including porn that might well be seen as offensive to “community standards” in at least one American state (the standard that would be applicable under the plurality view in Ashcroft v. ACLU (I) (2002), if prosecutors choose to bring a case in that state), or perhaps even under some “national community standard” (the alternative standard urged to varying extents by the other opinions in that case). In principle, the government might well be able to prosecute many American pornography producers and distributors under current obscenity laws.

[. . .]

So we have three possible outcomes:

(1) The U.S. spends who knows how many prosecutorial and technical resources going after U.S. pornographers. A bunch of them get imprisoned. U.S. consumers keep using the same amount of porn as before. Maybe they can’t get porn on cable channels or in hotel rooms any more, but that’s so twentieth century; instead, consumers will continue to be able to get more than they ever wanted on the Internet. Nor do I think that the crackdown will somehow subtly affect consumers’ attitudes about the morality of porn — it seems highly unlikely that potential porn consumers will decide to stop getting it because they hear that some porn producers are being prosecuted.

[. . .]

(2) The government gets understandably outraged by the “foreign smut loophole.” “Given all the millions that we’ve invested in going after the domestic porn industry, how can we tolerate all our work being undone by foreign filth-peddlers?,” pornography prosecutors and their political allies would ask. So they unveil the solution, in fact pretty much the only solution that will work: Nationwide filtering.

[. . .]

(3) Finally, the government can go after the users: Set up “honeypot” sites (seriously, that would be the technically correct name for them) that would look like normal offshore pornography sites. Draw people in to buy the stuff. Figure out who the buyers are. To do that, you’d also have to ban any anonymizer Web sites that might be used to hide such transactions, by setting up some sort of mandatory filtering such as what I described in option (2).

[. . .]

So, supporters of that plank of the platform, which do you prefer — #1, #2, or #3? Note that I’m not asking whether porn is bad, or whether porn should be constitutionally protected. I’m certainly not asking whether we’d be better off in some hypothetical porn-free world (just like no sensible debate about alcohol, drug, or gun policy should ask whether we’d be better off in some hypothetical alcohol-, drug-, or gun-free world).

I’m asking: How can the government’s policy possibly achieve its stated goals, without creating an unprecedentedly intrusive censorship machinery, one that’s far, far beyond what any mainstream political figures are talking about right now?

The great maple syrup heist must have been an inside job

Filed under: Business, Cancon, Food — Tags: , , , — Nicholas @ 10:02

The first time I heard about Quebec’s strategic maple syrup reserve was when someone made off with a quarter of the province’s sweet, sticky liquid:

On Friday, news broke that thieves had stolen $30 million dollars worth of Quebec’s strategic maple syrup reserves. Much as the United States keeps a stock of extra oil buried in underground salt caverns to use in case of a geopolitical emergency, the Federation of Quebec Maple Syrup Producers has been managing warehouses full of surplus sweetener since 2000. The crooks seem to have made off with more than a quarter of the province’s backup supply.

[. . .]

But harvesting maple is a fickle business, and that makes expanding the industry tricky. The trees need cold nights and mildly warm days to yield sap, meaning production can vary greatly year to year based on the weather. That’s a potential problem for the big syrup buyers, whether they’re bottlers or large food companies that make cookies or cereal. Quaker can’t pour a bunch of time and money into developing a maple-and-brown-sugar-flavored version of Life, only to find out it won’t be able to get enough of its ingredients, or that they’ll have to pay through the nose for each liter of syrup.

H/T to Nicholas Packwood for the link.

September 2, 2012

Institutionalizing income inequality

Filed under: Business, Cancon, Government — Tags: , — Nicholas @ 11:07

At the Worthwhile Canadian Initiative blog, Frances Woolley explains how a couple of data points will work to “bake in” income inequality:

If these are the rules used to determine wages, income inequality will prevail.

It’s impossible for all firms to pay their CEOs above the median salary — by definition, half of executives must be paid below the median. If the majority of firms adopt a compensation policy like the Bell Canada Enterprises one quoted above, CEO salaries will increase inexorably.

At the same time, allowing firms to bring in temporary workers at less than the prevailing market wage prevents the price of labour from being bid up in response to labour shortages, dampening salary growth for workers at the lower wage end of the labour market.

Inequality rules.

August 27, 2012

Lego is 80 years old

Filed under: Business, Europe, History — Tags: , , , — Nicholas @ 10:28

In The Register, Brid-Aine Parnell on the 80th birthday of one of the iconic toys of the 20th century:

Way back in 1932, Ole Kirk Kristiansen, a Danish joiner and carpenter, found he wasn’t making enough money from carpentry anymore and decided to try making and selling wooden toys instead. Although he didn’t know it yet, he was on his way to building the Lego company, which would eventually have some of the most recognisable and long-lasting toys in the world: bricks and yellow minifigurines.

[. . .]

According to that research, girls aren’t into Lego. Poul Schou, senior vice president of product group 2, told The Register that Lego was for boys, not girls, because although both sexes loved the larger preschool bricks of Duplo once the girls hit five, they weren’t interested in construction anymore.

“We have seen that girls seem to be less interested in continuing with our products when they get to four or five years old so we don’t really get them into the Lego system,” he said.

Here at Vulture Central, that seemed really odd. Not only did everyone in the office, regardless of gender, remember playing with and loving Lego throughout their childhood, for the most part, their kids, both boys and girls, love it as well.

[. . .]

Schou said that the company got “a lot of feedback from boys and girls”. The kids are encouraged to go online to talk about the products they buy and what age they are, and the boxes often include incentives to answer Lego survey questions as well.

Of course if girls aren’t buying Lego stuff, they won’t be answering any questions, which would be a kind of answer in itself (although whether the answer would be “Girls don’t like Lego” or “Girls don’t like surveys” would be hard to figure out).

Finland and the dangers of being a company town

Filed under: Business, Economics, Europe — Tags: , , , , , — Nicholas @ 09:09

I had no idea that Finland’s economy was so tightly tied to the fortunes of Nokia:

Nokia contributed a quarter of Finnish growth from 1998 to 2007, according to figures from the Research Institute of the Finnish Economy (ETLA). Over the same period, the mobile-phone manufacturer’s spending on research and development made up 30% of the country’s total, and it generated nearly a fifth of Finland’s exports. In the decade to 2007, Nokia was sometimes paying as much as 23% of all Finnish corporation tax. No wonder that a decline in its fortunes — Nokia’s share price has fallen by 90% since 2007, thanks partly to Apple’s ascent — has clouded Finland’s outlook.

[. . .]

Strip these sorts of firms from the list and only one resembles Nokia: Taiwan’s Hon Hai, an electronics manufacturer. Yet Nokia made 27% of Finnish patent applications last year; the corresponding figure for Hon Hai was 8%. Although numbers are falling, Finland is home to the greatest number of Nokia employees; Hon Hai’s staff is mostly in China. It is a similar story with other firms. Sales of Nestlé, a consumer-goods company, weigh in at 15% of Swiss GDP but its share of Swiss jobs is punier than Nokia’s in Finland. Samsung, whose revenues are twice Nokia’s, has half its clout as a share of GDP: South Korea’s economy is more diversified. The importance of Nokia to Finland looks like a one-off.

August 26, 2012

Google investigates their own in-house Gender Gap

Filed under: Business, Economics, Technology, USA — Tags: , , , — Nicholas @ 00:02

Tim Worstall in Forbes on Google’s unique approach to narrowing the Gender Gap:

As we all know, because we’re reminded about it often enough in rather shrill voices, the gender gap is one of the more pernicious unfairnesses in our society. This idea that women only earn 77 cents to a $1 for men, don’t get the same promotions, are in fact discriminated against by society.

The thing is, the more people study this question the less and less it’s possible to see that there is in fact a gender gap. Or rather, a gender gap driven by discrimination. Do note that economists discriminate (sorry) between taste discrimination and rational discrimination. Taste discrimination would be where women were treated worse than men just because they are women. Akin to say the dreadful racism of the past: and we would all admit that there was indeed discrimination against women in the workplace in the past.

What is a great deal less certain is whether this taste discrimination still exists: of course, we’ll always be able to find examples of it, but does it exist in a general sense, across the economy? Many researchers think not: for when you add up the effects of rational discrimination then look at the gender gap there doesn’t seem to be much if any room left for that taste discrimination. Rational discrimination is things like, well, women and men do tend to self-segregate into different occupations. Some of which are higher paid than others. Men tend to be willing to take riskier jobs and thus earn a danger premium to their wages. Women tend to negotiate less hard for their wages or a promotion. And of course women do tend to be those who take career breaks to have and to raise children. Perhaps this shouldn’t be so but it is and it’s most certainly true that the largest contributor to the gender pay gap is not gender itself but the effects of motherhood.

This is all pretty well known in the academic literature. What Google has done is most unfair. It has entirely ignored the academic work, ignored the partisans of both sides, and actually gone and asked its own staff what’s going on.

August 20, 2012

Why scam artists will never miss a meal

Filed under: Business, Economics — Tags: , — Nicholas @ 15:59

Megan McArdle on the perpetual lure of getting something for nothing:

…fraudsters and Ponzi schemers do not succeed at their scams merely because we let them. Recent financial frauds have big dollar signs attached, but at their heart, they’re often not much different from Nigerian email scams or a three-card monte game. They work best when they let the mark believe he’s getting away with something — often something illegal, or at least dishonest. It’s an old saw that “you can’t cheat an honest man,” but it’s mostly true. We are most vulnerable to Ponzi schemes and other confidence tricks when we start to believe that we can cheat the universe — that we can get something for nothing. The best con men succeed mostly because we are so desperate to believe them.

Even spectacular cases of financial fraud usually turn out to be remarkably banal in their execution. Embezzling grotesque sums rarely seems to require dazzling financial wizardry; all it takes is some basic clerical skills and a willingness to deceive.

After Peregrine Financial imploded last July, the firm’s president, Russell Wasendorf, confessed in a note related to a botched suicide attempt how he had misappropriated what seems to be more than half of his clients’ funds. The fraud was breathtaking in its audacity, and its simplicity: Wasendorf had been intercepting the bank statements and counterfeiting new ones using Photoshop and Excel. When auditors and regulators started confirming balances with banks, Wasendorf opened a P.O. box and put the address on the fake bank statements. When regulators started looking at online banking statements, he learned to fake those, too.

Bernie Madoff’s strategy wasn’t much more technically sophisticated than Wasendorf’s. And yet it seems to have been going on since at least the late 1980s, in large part because Madoff’s investors wanted an essentially guaranteed return of more than three times the annual rate of U.S. economic growth. They wanted, in short, to make quite a lot of money without working.

« Newer PostsOlder Posts »

Powered by WordPress