Wednesday, May 03, 2006

A hole in your profits

I have a new post today on Aplia's blog. It is a review of a new paper by Steve Levitt that analyses whether a particular bagel business was maximising profits over the last twenty years. The answer: yes in some respects (quantities) but no in others (prices).

The bagel business was the subject of an earlier analysis of honesty. Here is an article describing that research. Stephen Dubner has provided another example today.

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