Brief: Cannibalisation

Cannibalisation occurs when a company reduces the sales of one of its products by introducing a similar, competing product in the same market. Igami and Yang study this phenomenon in relation to burger outlets, pointing out that entry of new outlets harms the profitability of existing stores (cannibalisation) but that this occurs so as to Read more about Brief: Cannibalisation[…]

Everyday Economics – Why are consumer prices generally higher in urban areas than in rural areas?

In condensed urban areas there are many (potential) consumers and many firms operating to produce and sell to these consumers. The retail industry could be seen as operating between perfect competition and monopolistic competition, most retail establishments (including corner shops and the larger chains who sell branded goods; not including own brands) sell homogeneous goods Read more about Everyday Economics – Why are consumer prices generally higher in urban areas than in rural areas?[…]

Everyday Economics – ‘As seen on TV’

Why do firms label their products to say they have been advertised on TV when this information may seem irrelevant and doesn’t appear to convey a message to the consumer about the quality or function of the good? Well in fact, such a practise, does convey a message to consumers. At least about the quality. Read more about Everyday Economics – ‘As seen on TV’[…]

Everyday Economics

Economics is universal and surrounds our daily life, in practise it can be used to answer a wide range of questions that arise from daily life. No, this introduction isn’t a response to a University Interview question asking what economics is, but instead is an introduction to a new feature we are introducing – Everyday Read more about Everyday Economics[…]