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Secret Reason for Airline Basic Economy Fares

Basic economy fares in the air travel industry and not primarily intended to compete with low-cost carriers or attract price-conscious consumers with elastic demands. The many restrictions on travel, luggage, cancellation fees are designed to make corporate travel agencies not even consider basic economy fares, and instead spend for [...]

Secret Reason for Airline Basic Economy Fares2020-05-09T16:56:34-04:00

Big Business Is Overcharging You $5000 a Year

Many argue that globalization requires large companies with economies of scale. The result can be market concentration, and reduced competition, leading to higher prices. By comparing prices in Europe and the US, this article argues that higher prices are not the inevitable result of concentration but are a function [...]

Big Business Is Overcharging You $5000 a Year2020-05-10T09:15:58-04:00

Next Capitalist Revolution

The pro-market, Economist Magazine is concerned about increasing concentration of production among a few businesses in many industries, reducing competition and incentives to innovate. The Economist argues for increased government regulation (!) in the form or relaxing intellectual property laws (patents) from providing too much protection to existing businesses [...]

Next Capitalist Revolution2020-05-09T16:32:48-04:00

Will Mobile Phone Rates Fall as Shaw Buys Wind Mobile ?

The Globe & Mail reported that Shaw Communications is buying Wind Mobile in  a $1.6 billion deal. Primarily a cable and telecommunications company, Shaw wants to compete in the mobile phone business.  Share prices of the big 3 wireless provider -- BCE, Rogers, Telus -- fell on the news, anticipating that [...]

Will Mobile Phone Rates Fall as Shaw Buys Wind Mobile ?2016-05-03T14:45:49-04:00

Bell Pays $1.25 million Penalty for Fake Online Reviews

The Globe & Mail reported in October that "BCE Inc. has agreed to pay a $1.25-million penalty after the company's staffers wrote online reviews of Bell products and services without disclosing their ties to Bell. It is the first penalty of its kind imposed by the Competition Bureau in response [...]

Bell Pays $1.25 million Penalty for Fake Online Reviews2016-05-03T14:46:14-04:00

Game Theory

The best way to engage students with the abstract, mathematical techniques of game theory is to show the clip of the bar scene from A Beautiful Mind. This film about John Nash (based on the book by Sylvia Nasser) won the 2001 Oscar for Best Picture. Many students have [...]

Game Theory2020-05-07T16:21:21-04:00