Why aren't car sales going down?

When I was writing my previous blog post, I used shoes and shoelaces as an example of complements (in economic theory, when the price of one good goes up, demand for its complement will go down).

As I continued writing, I realized that shoes and shoelaces was a lame example and that perhaps cars and gasoline would be a better example. Unless you've got an electric car or you just want somewhere to sit, a car isn't much use without gasoline. Likewise, unless you're an arsonist, you can't do much with a jug of gasoline if you don't have a car.

B.C. cruise tax would hurt Washington and Alaska

When one jurisdiction raises its consumption taxes, it's usually good for the neighbouring jurisdiction. This is common sense — if the cigarette tax is almost four times higher in Montana than neighbouring North Dakota, for example, Montanans will drive to North Dakota to save money on cigarettes. Montana businesses lose cigarette revenue and the government loses tax revenue, while North Dakota gains.

But a potential tax on cruise ship passengers visiting Victoria (hat tip to Andrea Craig), as advocated by consultant and UVic lecturer Brian Scarfe, could actually be a bad thing for neighbouring jurisdictions.

An ingenious nudge

I discovered a very bright "nudge" while meeting up with some friends at the local Royal Oak last night (for non-Ottawan readers, it's probably the biggest pub chain in the nation's capital).

The Royal Oak does a good job of providing a decent atmosphere, decent food and a decent pint. They are also do a surprisingly good job of using anchors to their advantage. Anchors are quite simple and can be very effective — by triggering a customer's mind to a specific price or rate, you can affect how much they value a product.

Charities' guilt gifts overstep the bounds

My fiancée received an interesting gift in the mail recently from a charity called Plan Canada. They were asking for money to lift poor girls from around the world out of poverty.

 

The gift was "a small friendship bracelet of hope," accompanied by a picture of a cute young girl. The back of the photo reads, "This is Lina from Peru. She has already found a sponsor. Please sponsor a child like her. Many thanks."

Don't blame women

I have lacked inspiration for blog posts over the last couple months, but a Times Colonist article today has got me worked up enough to end my two-month hiatus. In a nutshell, there was a horrific crime in Victoria over the weekend; police allege four men forced a female university student into a car, driving around while repeatedly sexually assaulting her.

The crime is disturbing and does not require further commentary. What does is the warning issued by police after the crime:

"Police issued several warnings to women following the attack. Women are advised to travel in groups and stick to well-lit areas, carry a cellphone, refuse drinks from strangers and not leave drinks unattended. If drinking alcohol, women are urged to plan a safe ride home by cab or with people they know."

One of life's biggest mysteries

I love pineapple juice. It is full of deliciousness — and economic mysteries.