Showing posts with label market. Show all posts
Showing posts with label market. Show all posts

2016-06-20

Autonomous Cars and Autonomous Ownership

I was originally going to do a Linux distribution review this month. However, when I tried a couple of distributions that I wanted to test, none of them would properly boot from a live USB, so I gave up on those. Instead, I wanted to use this space to ramble a bit on what the near-future of self-driving cars might look like. It comes from some conversations I had with my family last weekend while visiting California, after having seen the limited self-driving capabilities of a Tesla Model S (namely, its ability to autonomously pull in and out of a parking space). Moreover, as some of you who know me personally would know, I have a disability that prevents me from driving, so the sight of even minimally-autonomous cars as a present reality excites me, and I'm keeping an eye on current developments in that field/market. Given this, if you'll indulge me, then follow the jump to (not exhaustively) explore some possibilities for self-driving cars.

2010-07-22

Book Review: "The Undercover Economist" by Tim Harford

(CC-BY-NC-SA Das U-Blog by Prashanth)
This is also a borrowed book (from the same relative that lent me the book Mokshagundam Visvesvaraya). That said, I will say right off the bat that this is a far superior book in terms of writing style and quality.
I took an AP Economics course this past year, so I was somewhat familiar with most of the concepts presented in this book beforehand. However, when I read the book, I realized what I had been missing.
My class's questions didn't have any apparent relation with what was going on in the world. Why should I care if XYZ Corporation's average variable cost is higher than the market price of the good it sells? One is truly an economic theorist if one weeps at the thought of a hypothetical company shutting down to minimize costs. On the other hand, this book relates economic concepts to things that matter, like why coffee is sold at different prices and why different land areas fetch different prices.
Harford first talks about the ideas of rents and profits, continuing with the various functions of prices as signals and the various means companies try to extract different prices from different customers (for the same product). He then talks about externality taxes and subsidies, continuing with market failures occurring due to the presence of inside information (i.e. information that one side but not the other doesn't). He then continues with a discussion on the stock market and on bidding wars. He concludes with discussions on why poor countries remain poor and on the effects of globalization on various countries, both rich and poor.
In short, I am convinced. By using relevant, practical examples in explanations of every concept introduced, he has convinced me that while the free market can solve most problems, government intervention is generally required when externalities show up (and these can't be solved by market negotiations); this is a very reasonable-sounding idea, without resorting to the ideologies of either "government is always bad" or "markets are always harmful".

2010-07-13

Android, Open Source, and the Free Market

Glyn Moody has a piece on why Android will beat the iPhone.
To summarize, the reason for this is twofold: Android is making its way onto more platforms than just smartphones (it is also making its way into TVs, set-top boxes, GPS devices, et cetera), and there are apps for the Android allowing for the creation of even more apps for oneself or for further distribution, so the app ecosystem can grow much larger.
The latter part reminds me of a quote (which I can't find verbatim at the moment) I read in the book The Undercover Economist by Tim Harford (which, incidentally, I will be reviewing in a future post) that describes how Soviet officials visiting the US observed the production and sales of cars (I think) and wondered who could possibly be planning it all. (The answer, of course, is no one (aside from the company with its production and sales targets, but ultimately, the customer decides).) Similarly, Apple's apps must all be evaluated by Apple and must be in the correct programming language and must be appropriate (according to Apple) to make it into the app store. It is a time-consuming process, as the app must be available to everyone. With Android, however, users can make apps for personal use without any evaluation process of any kind. No central authority determines which apps make it through and which don't. As long as the user has a good idea (for themselves) and some programming ability (though with the App Inventor, even this is not necessary anymore), an app can be born. Sure, there will be a lot of apps of poor quality, but let the consumers, not any company, decide which apps are worth downloading.
The former part reminds me of a discussion I was having with my relatives on when open source should be used as a business model. One of my relatives said that the reason why Sun was financially doing so badly before being bought by Oracle was because they open-sourced their flagship product (Solaris, which became OpenSolaris) despite not having anyone outside the company to make meaningful contributions to the project. The same was true of their SPARC processor line (which was an example of open source hardware) — it didn't really work well with any other existing hardware, so other developers couldn't really contribute to the project meaningfully. Android, on the other hand, is a good example of an (mostly) open source project because it is being ported to so many different kinds of hardware by so many different developers and companies.
Maybe the competition between the iPhone and Android isn't really fair because Android is present on so many more kinds of devices compared to the iPhone OS.
(UPDATE: TechCrunch agrees with me. Sort of. Yay!)

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What do you think about the Android vs. iPhone rivalry? Is it fair? Who will win? Please leave your thoughts in the comments.