http://goodmorningeconomics.wordpress.com/2008/04/10/statistical-descrimination-in-retailing-factor-markets/ Thoughts on economics and political economy from two students at the University of Washington Mon, 06 Oct 2008 18:14:45 +0000 http://wordpress.org/?v=MU hourly 1 http://goodmorningeconomics.wordpress.com/2008/04/10/statistical-descrimination-in-retailing-factor-markets/#comment-1503 Harisnya Wed, 16 Apr 2008 14:51:39 +0000 http://goodmorningeconomics.wordpress.com/?p=302#comment-1503 yes, this organization will raise all costs but no lowers the overhead fees yes, this organization will raise all costs
but no lowers the overhead fees

]]> http://goodmorningeconomics.wordpress.com/2008/04/10/statistical-descrimination-in-retailing-factor-markets/#comment-1495 jsalvati Fri, 11 Apr 2008 07:42:55 +0000 http://goodmorningeconomics.wordpress.com/?p=302#comment-1495 It's true that there would be overhead, but I have a hard time imagining the overhead being huge. And, like you said, they could just raise the submission fee until it covers their costs. Incidentally, I think this would be relatively to "crowdsource" over the internet using prediction markets (though they are generally in a legal gray area for now), which would lower the overhead costs dramatically. I am going to try to post about that soon. I'd probably even seriously consider setting up a website to do that if prediction markets didn't have legal problems. It’s true that there would be overhead, but I have a hard time imagining the overhead being huge. And, like you said, they could just raise the submission fee until it covers their costs.
Incidentally, I think this would be relatively to “crowdsource” over the internet using prediction markets (though they are generally in a legal gray area for now), which would lower the overhead costs dramatically. I am going to try to post about that soon. I’d probably even seriously consider setting up a website to do that if prediction markets didn’t have legal problems.

]]> http://goodmorningeconomics.wordpress.com/2008/04/10/statistical-descrimination-in-retailing-factor-markets/#comment-1493 Alex Loddengaard Thu, 10 Apr 2008 19:49:31 +0000 http://goodmorningeconomics.wordpress.com/?p=302#comment-1493 How do you think this would scale? I agree with your proposed solution in principal, but I'll bet that if this were really implemented, the overhead associated with "The Department of Approval" would be large. Each company would need some set of moderately intelligent people approving or denying, and this set of people would need at least one manager. Perhaps this organization could raise the cost if they had too much demand for approval? What do you think? How do you think this would scale? I agree with your proposed solution in principal, but I’ll bet that if this were really implemented, the overhead associated with “The Department of Approval” would be large. Each company would need some set of moderately intelligent people approving or denying, and this set of people would need at least one manager. Perhaps this organization could raise the cost if they had too much demand for approval? What do you think?

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