The “tragedy of the commons” (Garrett Hardin, 1968) is a concept in economics that describes how a group of self-interested individuals can destroy a shared (and free) resource. Hardin’s classic is example is a group of herders who destroy a pasture as each herder maximizes his/her number of grazing cows to make the most use […]
Disney has increased prices at Walt Disney World despite experiencing a drop in revenues last quarter. In its earnings reported July 30, the company had this to say about operating income: “Lower operating income at the Walt Disney World Resort was primarily due to decreased guest spending and lower corporate alliance income recognition, partially offset […]
First Solar (FSLR) talked about its pricing challenges in last Wednesday’s conference call with analysts. The company is having trouble sorting through the various factors slowing demand for their thin film solar panels: for example, lack of credit and financing or competitor pricing. I suspect that First Solar’s sales teams need to do more aggressive […]
Bloomberg reports “Loyal ‘Simpsons’ Fans Fetch Higher Ad Rates on Web.” Premiun programming on the Web has gained pricing power due to the scarcity of popular, targeted advertising inventory. In the future, I would look for the industry to find ways of increasing ad inventory and creating more tools for mass audiences to create and […]
Stephanie Rosenebloom writes in the New York Times: In Recession, Strategy Shifts for Big Chains (June 20, 2009). Retailers continue to re-engineer the industry to maintain positive profitability. The recession has forced the hand of several major retailers to bring prices and product offerings in-line with the new frugality of consumers. Luxury retailers are broadening […]
This free webinar from the Stanford Graduate School of Business, Executive Education, looks interesting. I hope to post a review soon after attending: _________________ Title: Mind Tricks: How the Brain Reacts to Price-Based Offerings Host: Professor Baba Shiv Date: Tuesday, June 23, 2009 Time: 8:00 AM – 9:00 AM (Pacific Daylight Time) Registration: www.stanfordinnovation.com In […]
