zwaps

113 ms·

1141.
by zwaps 8y ago
The sure things principle comes from decision theory and economics. It's obvious in the sense that it constitutes one of the axioms that define rational behavior. In decision theory, we try to define behavioral axioms in a way that cho
1142.
by zwaps 8y ago
I only write my bespoke contributions with my gold-plated Lamy chisel on Italian white granite. I think children these days do not appreciate the art of text.
1143.
by zwaps 8y ago
Ahh now it is finally clear. Then the laws in Pittsburgh are just bad. Not a design question at all. Here you oull into the intersection on green, turn slightly ti a big white cross on the road for exactly this purpose and go when it is cle
1144.
by zwaps 9y ago
This is just scary.
1145.
by zwaps 9y ago
A country where if you disagree with any policy on social media, your kids literally can't go to school, you can't fly and you can't buy a house. Sure, I'll invest right away!
1146.
by zwaps 9y ago
This is written so broad... facebook basically has just patented statistical classification if its output are socioeconomics? How can this be legal? Facebook did not invent machine learning. How can they patent it?
1147.
by zwaps 9y ago
The whole article is also interesting in that it is what happens when someone thinks only in "sociological" concepts such as role, class and distinction. For most, economic factors (so, scarcity) would be a very obvious explanatio
1148.
by zwaps 9y ago
Not to pile on, but publishing low quality pieces such as this really doesn't do "the cause" any favors. The obvious question the article avoids is "why then are there so few women back-end devs?". That is really th
1149.
by zwaps 9y ago
First, your point about optimality is "not even wrong". Like I said, the surplus value you want to give your customers is really up to you and the optimality starts from this point. Yes, people may misunderstand this in the articl
1150.
by zwaps 9y ago
Ignoring your needlessly hostile tone, it is Tom who proposes nonlinear pricing schemes. If there were no interest in controlling the surplus left for consumers, neither him nor anyone else would have need to employ such schemes. Entreprene
1151.
by zwaps 9y ago
Not sure... transactions costs could be defined as costs that need to be payed by either side to complete the transaction. In this case, we are talking about a shift of surplus towards the consumer. If you have a high willingness to pay, it
1152.
by zwaps 9y ago
The pricing scheme is derived as an optimality solution for the company. Obviously, it always (mathematically speaking, weakly) benefits the firm. An all-knowing monopolist will extract 100-epsilon% consumer surplus. That's why economi
1153.
by zwaps 9y ago
You get some surplus, because it is not possible to write a non-linear pricing scheme that extracts everything from all customers. That is basically, depending on your willingness to pay, you may get a pretty good deal. The underlying reaso
1154.
by zwaps 9y ago
If every customer is anonymous and purchases one unit of your product, you can not really do any of this. If you can identify features of the customers, you may be able to price discriminate on that. Customer usually really, really hate thi
1155.
by zwaps 9y ago
Yes and no. 1. If you sell a good where you can not sell different qualities at all, customers get angry. This happened on the internet for example, when there is geo-targeting and other things. 2. In most cases, customers do not notice non
1156.
by zwaps 9y ago
If you can not differentiate your product at all, it will be pretty hard to price non-linearly. You are right there: Customers will run away. It has happened on the internet (targeting), but people get very angry. Uber extracts from two sid
1157.
by zwaps 9y ago
He is assuming you set individual prices per customer or basically that each customer has his or her own demand elasticity. What you are thinking of is a market demand, which is a useful approximation when the market is large and anonymous.
1158.
by zwaps 9y ago
This is actually a argument based on the economic theory of pricing. To be quite fair, the statement that 3part is best is not entirely correct. The idea is he following: In a old-school normal market, where you sell one good to a whole bun
1159.
by zwaps 9y ago
I use Game Theory in pretty much everything (academic) Here are some thoughts on the literature. There are several different strands and evolutions of Game Theory. 1. Game Theory (non-cooperative): The basis was Neumann/Morgenstern The