Business and finance

Airlines are trying to cram ever-more seats onto planes

1 month ago adcity Comments Off on Airlines are trying to cram ever-more seats onto planes
AIRLINES use all sorts of clever tricks to make more money from passengers. They charge extra for bags, for food and for selecting where you sit. Now they are embracing another strategy: packing more seats onto each plane. Last month American Airlines announced that it will insert 12 more seats, or two rows, into its Read More

Richard Thaler’s work demonstrates why economics is hard

1 month ago adcity Comments Off on Richard Thaler’s work demonstrates why economics is hard
RICHARD THALER has won the Nobel prize in economic sciences this year for his contributions to behavioural economics. It’s a well-deserved prize and a clarifying one, as far as economics is concerned. For a very long time, economists hoped to treat individuals a bit like particles in physics, whose activity can be described by a Read More

Richard Thaler wins the Nobel prize for economic sciences

2 months ago adcity Comments Off on Richard Thaler wins the Nobel prize for economic sciences
THE credit-card bill arrives. You have enough money in a savings account to pay it off—the sensible thing to do, arithmetically speaking, since the interest rate on the credit-card balance far exceeds that earned on the savings. Yet you leave the savings untouched, and pay only as much of the bill as your current-account balance Read More

When investors get stuck in the past

2 months ago adcity Comments Off on When investors get stuck in the past
THE award of the Nobel economics prize to Richard Thaler is a reminder that economics has been struggling, in the past 30 years, to adapt its models to the real-life decision-making processes of actual humans. The problem applies as much in investment as anywhere else. One of the biggest problems is the tendency to assume Read More

All-you-can-fly membership models are slowly catching on

2 months ago adcity Comments Off on All-you-can-fly membership models are slowly catching on
LONDON’s Luton airport is not renowned for its quick boarding. But now it is possible to show up there and in 15 minutes be on a plane bound for Zurich. That is thanks to the recent expansion of Surf Air, a small carrier. Though its name may be unfamiliar, its business model is, in fits Read More

The Nobel in economics rewards a pioneer of “nudges”

2 months ago adcity Comments Off on The Nobel in economics rewards a pioneer of “nudges”
NOT long ago, the starting assumption of any economic theory was that humans are rational actors who maximise their utility. Economists summarily dismissed anyone insisting otherwise. But over the past few decades, behavioural economists like Richard Thaler have progressively chipped away at this notion. They combine economics with insights from psychology to show how heavily Read More

Can you afford to retire?

2 months ago adcity Comments Off on Can you afford to retire?
HOW much money do you need to retire? Depending on your age, it is a question you think about a lot (if retirement is imminent) or barely at all. For younger people, the subject is a combination of too far away, too complex and too boring, and too depressing. When you consider that you might Read More

How protectionism sank America’s entire merchant fleet

2 months ago adcity Comments Off on How protectionism sank America’s entire merchant fleet
IN APRIL 1956 the world’s first container ship—the Ideal X—set sail from New Jersey. A year later in Seattle the world’s first commercially successful airliner, Boeing’s 707, made its maiden flight. Both developments slashed the cost of moving cargo and people. Boeing still makes half the world’s airliners. But America’s shipping fleet, 17% of the Read More