Conscious Capitalism

This review of a new book by the CEO of Whole Foods is a good introduction to the a discussion of the proper goal for a firm. It could also spark discussion about firm architecture and Hayak's views.

The Logic of Collective Action

This opinion in the Washington Post is a good introduction to what Mancur Olsen said about collective action and interest groups. President Obama's use of the phrase, collective action, prompted the opinion.

Regulations and Rent Seeking

CNNMoney posted this article. It is a nice list of regulations that prevent entry and competition. It could be a nice way to introduce a discussion of the government's role in regulating market inefficiencies and the danger that government regulation becomes rent seeking. The example about taxicabs could also spur discussion about the entry and exit decisions and what determines the price of medallions.

Econ on Demand

Click here to see some good video clips discussing a variety of topics in economics 

Costs

Here is a nice video from the Kahn Academy on short-run costs.

Pricing iPhones

This article in the WSJ is a nice example of the difficulties pricing different versions of a product. 

Ice Cream Wars

Clip here for an NPR story on Ice Cream Trucks in Chicago. It touches on vertical relationships, rent seeking, incremental analysis, and collusion.

H&M on Vertical Integration

Click here for a video in which H&M describes its vertical integration.

Split or Steal

Here are three clips from Split or Steal. They make great introductions to game theory.

• Clip 1
• Clip 2
• Clip 3

Hudsucker Proxy

This clip features Hula Hoops and is a great introduction to pricing and supply and demand.
This longer clip also introduces organizational architecture and decision rights. 

Sowell on Minimum Wages

Click here to read Thomas Sowell's critique of minimum wage legislation; he argues that it creates unemployment among the most disadvantaged people in the labor force. For a similar critique, click here to see a part of an interview with Milton Friedman.

400 years of health and standards of living

Click here for a great video showing 400 years of data for health and GDP per capita for 200 countries. It shows the link between health outcomes and GDP, that outcomes improve at different times in different areas and countries, and that war and epidemics can have big effects. It makes a great introduction to talk about economic development and the role of institutions and good government.

An analysis of a tax on carbon

This article discusses the limitations of using a carbon tax to address global warming. I like its discussion of externalities and the Coase theorem. It also recognizes that either cap and trade or a carbon tax can reduce carbon emissions. However, some of the analysis is fuzzy or confusing.

The author claims that "Most economists prefer a revenue-neutral carbon tax that would be imposed at the mine-head for coal, the wellhead for natural gas, and at the refinery-gate for petroleum products." I don't know the preference of most economists, but I would prefer imposing the tax on the producers who emit it if unless monitoring costs are prohibitive  Why make a utility company that sequesters carbon dioxide pay as much for coal as one that burns "dirty"?

Roll with the Flow

This video is cute and a good introduction to political economy. Who doesn't like a video where Hayek is a hero? The video also mentions Keynes and Bastiat. Some topics mentioned are: measurement of economic activity, invisible effects, opportunity cost. and the subjective nature of value. 

Teaching IBM new tricks

This article can stimulate classroom discussion on strategy.

Ford's Response to Higher Fuel Mileage Requirements

This article in the WSJ describes how Ford is preparing to meet the new Federal mandates for fuel efficiency. It can be used to stimulate classroom discussion about strategy, costs, production, political economy, and supply and demand.

Strategy

1. This site is an account of Buffet's perspective on competitive advantage.
2. This link is Investopedia's definition of an economic moat.
3. In this interview Warren Buffet discusses investing, moats, and sustainable advantages.
4. Here Warren Buffet describes moats and castles.

Porter on Strategy

This clip is my favorite introduction to / summary of strategy.

Instructional Video on Pricing

Click here to see an instructional video I might use to introduce complex pricing. I like that it points out that pricing of one good depends on its relationship to another good. I also like that it points out that the identification of the optimal price is difficult. I dislike that it fails to mention quantitative analysis of demand or elasticity and the final conclusions are vague. The mattress test looks like a great basis for an advertising or marketing campaign or a direct sales pitch; its ability to set price seems to be limited because it ignores that substitutes for your product may exist..

Even Kids Resent Price Discrimination

Click here to see a commercial by Ally Bank.

What can we learn about pricing from Lucy Ricardo?

Click here to view a clip from I Love Lucy on how (not) to set price. It is a good introduction for Bertrand pricing in an undifferentiated duopoly, strategy, whether a marginal sale is profitable, and the shut-down decision.

My Life as an Instructor

Click here to see Rodney Dangerfield's first class in economics.

Apple Cuts Back Orders from Suppliers

This article in the WSJ describes how the slowdown in orders for iPhones is affecting Apple's suppliers. It shows nicely that the demand for inputs are derived from the demand for the final good. It also notes a problem for suppliers selling parts that are customized for Apple.

Detroit Responds to Fuel Mileage Mandates

This article in the WSJ describes what the automobile manufacturers are doing to meet the new Federal mandates for fuel mileage and the possible effects on the market for automobiles. It provides a good case study of cost-benefit analysis, the role of government, and externalities.

Wal-Mart Enters India

This article in the WSJ describes well the disadvantages of bad infrastructure and government regulation.

Resale, Trade, and Arbitrage

This article in the WSJ describes the artirage opportunities available when companies sell goods at lower prices overseas than they in the US market. The Supreme Court is hearing a case about the legality of resale back here in the US. Guess which side manufacturers support.

Benefits of Price Gouging

This article in the WSJ discusses the advantages of higher prices during emergencies.

How much ... ?

Patti Page's song.

Internet Access in Hotels

This article from Slate describes well the choice hotels face when deciding whether to include "free" Internet access with their rooms or to require an additional payment from their guests.

Online Price Discrimination

This article in The Economist is a nice discussion of how companies can use the Internet to gather information and to use the information to discriminate in price.

Price Discrimination on the Internet

This classic news item describes an instance when Amazon charged IE users different prices than shoppers who used Netscape. The instance illustrates well how web sites can customize a visitor's experience and the opportunities it provides to discriminate in price.

Before reading the item take this quiz: Who saw the lower price, IE users or Netscape users?

Price Discrimination or Steering Customers to What They Want?

This article from the WSJ describes how Orbitz "is experimenting with showing different hotel offers to Mac and PC visitors". This experiment be viewed as an attempt to discriminate in price or as an attempt to help customers find what they want more easily. The experiment also illustrates how web sites and offers can be customized. 

Before reading the article, take a quick quiz:  Who saw more expensive hotels earlier in the list from Orbitz, PC or Mac users?

Web sites discriminate

This article in the WSJ describes how Staples uses estimated distance from a brick and mortar store and possibly estimated income and other factors to vary the price displayed on its online store.