Illiquidity and the Hot Dog Effect

This article uses an example of buying hot dogs and hot dog buns to illustrate how liquidity in a market can improve efficiency. Hot dogs and hot dog buns are often sold in incompatible quantities. This causes us to consume more or less than our ideal basket of consumption. For example, you may be able … Read more

The Importance of Moral Information

This article will argue that information is heterogeneous. It will further argue that a particular kind of information is moral information and that information is a key driver of consumer and producer preference. These preferential changes can result in significant shifts of entire supply and demand curves. Let’s say you are told something. You are … Read more