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EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
| UTILITY AND CONSUMER CHOICE | |
| Title | Brief Summary |
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Is it possible to be willing to pay more for something when you don’t realize that you’re paying for it? Are governments increasing tolls on roads with electronic payments because they can? According to one economist, the answer is yes. (Updated July, 2007) |
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What makes a painting by Gustav Klimt worth $88 million? A later Cezanne worth $37 million, but an early Cezanne for only $1.1 million? Usually those differences get chalked up to that aphorism about beauty being in the eye of the beholder. But an economist at the University of Chicago think that the value of the beauty can be statistically modeled. (Updated January, 2007) |
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After Charles and Anne Lindbergh's baby was kidnapped in 1932, some insurance companies began selling "kidnap, ransom and extortion (K&R)" insurance to individuals and corporations. Such policies cover ransom and related costs, counseling, family travel costs, death benefits and lost wages. Sales of such policies are on the rise. (Updated September, 2006) |
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Recent scandals involving the "backdating" of stock options for executives has called the use of stock options to motivate top managers into question. This article suggests that, while some people have used the incentives for their own gain, we need not throw out the entire system when the system itself isn't flawed. (Updated August, 2006) |
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2005's storm season with its star attractions Katrina and Rita-following on the heels of the very active 2004 storm season-- caused almost $55 billion in damage. This year's storm season is also predicted to be particularly active, though not as bad as last year. In the wake of huge payouts associated with past years' hurricanes, insurance companies are coming up with policyholder incentives as the companies revise their policy offerings. (Updated July, 2006) |
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Imagine that you have purchased a work of art, for what you believe to be a really good price. Now imagine that you hate the frame. It’s not original, doesn’t have that “special something” that makes the picture stand out. Is the picture really worth the price you paid if you hate the frame? (Updated June, 2006) |
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Now! In stores near you, clinics are beginning to pop up, offering walk-in health services at a fraction of the cost of visiting emergency rooms or your doctor's office. Approximately 100 such clinics around the country are already in business; parent companies hope to expand to over 2,000 mini-clinics in the next three years. (Updated May, 2006) |
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Wal-Mart earned over $312 billion in revenues last year, employed 1.3 million workers in the U.S. alone, and had 3,800 stores in the U.S.-and counting. So is it doing any good? (Updated March, 2006) |
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Since the early 1970s, the percentage of Americans who smoked has fallen from 37 percent to 22.5%; during the same period, the percentage of Americans over the age of 20 who are considered obese has increased from 14% to 30%. Is there a connection? (Updated September, 2005) |
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The "Freezerator" refrigerator/freezer from Whirlpool has a tread pattern on the front for just over $1,000. A Ten50 fridge has Harley-Davidson flames and handles that look like motorcycle handles. It costs about $6,000. Who buys these things? Why, men, of course. (Updated September, 2005) |
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Southwest Airlines can fly anywhere it wants, as long as it's not more than one state away from its home airbase. Or so says the Wright Amendment. (Updated February, 2005) |
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Donated organs are in short supply, and governments think they have a partial solution to the problem: offer tax breaks to donors." (Updated February, 2005) |
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While Wal-Mart and other mass retailers have struggled this holiday season, the high-end luxury market has flourished. Bergdorf Goodman's, Nieman-Marcus, Nordstrom's and a variety of high-end boutique retailers are seeing huge sales increases this season. (Updated February, 2005) |
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: Europeans have always
chosen in favor of less work and more leisure. Compared to U.S. workers,
European employees work fewer hours in the week and take more time for vacation.
The average number of vacation days in the US is 12 days, while in Germany
the average is 30 days, and in France it is 25 days. However, EU nations
are discovering that fewer hours worked does not translate into more workers
working, or into greater competitiveness globally. (Updated August, 2004) |
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Recent studies demonstrate
that while U.S. citizens spend far more than any other country's citizens
on health care services - about 14% of GDP compared to 8% for other developed
nations - U.S. consumers receive fewer services and lower quality health
care in some health concerns. (Updated August, 2004) |
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In response to changing
consumer trends toward healthier eating, McDonald's announced that on May
6, 2004, it would roll out Adult Happy Meals, called "Go Active!"
meals, in all 13,600 U.S. domestic McDonald's restaurants. (Updated June, 2004) |
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Energy prices are predicted
to increase significantly in 2004, resulting from a significant increase
in demand. Higher prices are prompting a move toward greater energy efficiency
in the home and in consumers' purchases. (Updated January 4, 2004) |
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In an attempt to reduce
the level of obesity in society, a lump-sum tax is imposed, out of which
people can receive rewards for maintaining healthy eating habitss. (Updated August 27, 2003) |
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Retail sales are growing
more slowly due to higher interest rates and spiraling gas prices. The trend
is expected to continue, forcing clearance sales. (Updated September 1, 2000) |
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