Category Archives: D Microeconomics

Where do the rich come from?

Were you not born into a rich family? Never mind, your chances to become a billionaire have never been better. Steven Kaplan and Joshua Rauh (both from the University of Chicago) conducted one of the less typical academic researches when they studied characteristics of the richest Americans. Using the Forbes ranking which lists the top… Read More »

Should tall people pay more taxes?

Do you think that’s absurd? Keep reading. Tax systems of most developed countries are astonishingly complex. Depending on your country, factors such as your income, consumption, wealth, number of children, charitable contributions, mortgage payments, health insurance expenditures, or whether you donate blood may all influence your tax liability, i.e. the total amount of tax due each… Read More »

Get out of your social bubble

Recently, social media have become the primary source of information for many and thus play an increasingly important role in influencing opinions, and apparently more so for the young generation. The problem is that on social media, opinions you usually get exposed to become less and less diverse as a result of both automatic filtering… Read More »

Does it pay off to motivate consumers to leave feedback?

The importance of online customer-to-customer (C2C) marketplaces has been growing and nowadays Taobao, the biggest platform in China, has 500 millions of registered users. Such platforms have a common inherent issue – the presence of asymmetric information and adverse selection problems, which obstruct trade. Fortunately, the online world allows buyers to leave feedback assessing how… Read More »