Competition for Data? Netflix and the Fight Over Data Caps

In a recent article from Ars Technica, Jon Brodkin outlines the arena where Netflix, Comcast, and the FCC are battling over the implementation of data caps from ISPs.

The deeper issue here is how we approach net neutrality and allow ISPs to control content.  Facing data caps, consumers will have to make marginal choices on what content to consume, forcing some consumers off the internet and onto cable TV.  This seems like a clear reduction in competition.

Comcast, a; virtual monopoly in some markets, argues that the implementation of data caps are to “align consumers’ use of the network with what they pay.”  This tactic known as price discrimination, allows firms to charge a consumers willingness to pay instead of one flat market price.

Comcast isn’t alone in their actions though.  Take for instance mobile ISPs and their arbitrary mobile data caps.  Overage charges again are a way for ISPs to determine a consumer’s willingness to pay for access to streaming content.  Moreover, some mobile carriers have exclusive deals in place with content providers where streaming content from these providers does not count against consumers’ data caps. This is clearly a net neutrality issue and one that many consumers have yet to understand.

A New Prison Currency Emerges

To the dismay of almost all of my students ramen noodles are no longer the go to inferior good example.

In a recent study by Michael Gibson-Light, it was revealed that ramen noodles have overtaken cigarettes as the preferred prison currency.  Citing a variety of reasons for the departure of preference, almost all reasons lacked economic foundation.

Does ramen meet our theoretical money criteria? It certainly is durable and portable.  It has uniformity and meets our idea of acceptability but is it divisible?  To en extent yes, but as an astute colleague indicated, it sure must be hard to divide that flavor packet.

12 Factors Causing the Current Market Turmoil

In an excellent and very accessible article in the World Economic Forum, John Authers presents 12 factors currently contributing to the global volatility in markets, and general uncertainty in the economic climate.

One of the most important contributions of this article is to correctly explore the issue with Crude Oil prices and the impact US production has on global markets.  Not too long ago, “peak oil” was a very serious idea impacting economic markets in a very different way.  Will we see these ideas again, I’m not sure.  The stone age didn’t end because we ran out of stones.

One of the most important questions which comes out of this brief analysis is, “Are we headed for another recession?” Well, that question is hard to answer, but there are market indicators signaling a recession is on the horizon.  But on the other hand, there are many macroeconomic indicators pointing to expansion.  So, I guess, it depends on who you ask.

If you have 10 minutes, give this article a read.  At the very least you will be marginally informed of the global economic climate.