Last week, The Business Roundtable released an updated statement on the purpose of business. It might seem like firms are departing from standard business theory, but are they redefining business?
Humans make choices they believe will provide the greatest satisfaction according to their subjective values with the information they have on hand. These values are not only unique to each individual, they are unique to the circumstances under which a good or service is experienced.
On June 25th, 2019, rapper Travis Scott announced a collaboration with Reese’s Puffs cereal, selling limited-edition boxes for $50. That price seemed ridiculously high to me. I wouldn’t pay $5 for cereal, let alone $50. Joke’s on me though, because they sold out in less than a minute. The next day they were up on … Continue reading Respect the Hustle: Travis Scott Cereal Boxes and Arbitrage
A central question of economics is to understand how in the heck social coordination is able to exist in such a crazy world. With all our differences in beliefs, resources, abilities, and more, it is remarkable people can work together long enough to produce a Big Mac pretty much anywhere in the world. Economists will … Continue reading Clearly Ambiguous — Institutions
Kevin D. Gomez testifies at Omaha City Council, May 21, 2019.