Archive for April 5th, 2013

Norwegian economics professor jumps on the scale … endorses “pay what you weigh”

April 5, 2013

OK, I think this case is now officially done.

It started a couple of weeks ago when Iposted  Why don’t airlines charge more for these bags?

Specifically, I suggested that airlines charge passengers by weight: a base ticket price for the first 175 pounds and then $75 for each 50 pounds (or portion thereof) over the limit.

I  thought I was on safe ground since a  survey done for the travel website Skyscanner reported that 76% of travelers said airlines should charge overweight passengers more if they didn’t fit in a seat.

But, the idea went over like a lead-butted balloon.

Turns out that, as usual,  we were just a bit ahead of the times.

Yesterday, we reported that Samoa Air became the first airline to start charging by the pound.

For details, see Samoa Air: Pricing by weight is the ‘concept of the future’

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Now, even politically correcct academicians are hopping on the scale.  A Norwegian economist has suggested — in a prestigious academic journal —  a “pay what you weigh” pricing plan that “would bring health, financial and environmental dividends.”

Here’s the skinny on his program …

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Nums: UE rate down to 7.6% … thanks to quitters.

April 5, 2013

The reported unemployment rate dropped to 7.6% despite a meager 88,000 jobs being added in March.

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It’s conventional wisdom that you need more than 200,000 jobs added to move the needle.

So, why did the UE rate go down.

You guessed it: the Labor Force Participation Rate dipped again … more people (about 500,000) stopped looking for jobs … and weren’t counted in the unemployment numbers.

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The administration shills have been harping on the Sequester to explain the numbers (even though it didn’t really kick in during March).

They dismiss the idea that the slowdown could be due to:

  1. Increased taxes … especially the payroll tax
  2. ObamaCare
  3. An anti-biz administration

Nope, just not enough government spending.

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Pizza ! Pizza! … Little Caesar’s "biggest product introduction in the company’s 54-year history."

April 5, 2013

Once again, coincidence strikes.

This week in class we’re doing a a case about a company trying to launch an innovative refrigerated pizza.

Guess this is innovative pizza week.

Leading the charge: Little Caesars

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According to the Huffington Post, Little Caesars — “more known for value than taste” — is launching a big new “higher end” product called the DEEP! DEEP! Dish pizza.

The new pizza is “Detroit-style” — a thick, square-panned pie that’s crispy on the edges, but has a soft, chewy middle.

No kidding, the company is calling it “the biggest product introduction in the company’s 54-year history.”

Hmmm.

I can remember sucking down Uno’s deep dish in Chicago 40 years ago … and, I was a late-adopter.

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I guess that some innovations diffuse through the market at a slower rate than others …

P.S. “Detroit-style pizza” … you gotta be kidding me.

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