Archive for the ‘Economics’ Category
Sultan of Johor doesn’t understand network economics, should STFU
According to CNA, the Sultan of Johor says:
And for the economic region to develop and grow, the Sultan of Johor has suggested demolishing the Causeway linking Johor and Singapore.
He said that without the Causeway, the Johor economy would prosper.
I don’t understand why the opinions of people who live within the pinnacle of privilege in society AND who have no idea what they are talking about should have any weight at all.
Its all in the incentives
I chanced upon this amusing letter in TODAYonline. Haslinda Shamsudin asks:
I would like to raise a point about conflicting advice given to women. Polytechnic doctors who perform pap smear screenings would advise their patients that it is sufficient to have it done once in three years.
Gynaecologists in private practice and at government hospitals would however, advise that such screenings be done annually. Perhaps the Obstetrical and Gynaecological Society of Singapore could clear the air.
I think the answer to this curious conundrum is pretty clear: its all in the incentives. PolyCLINIC doctors are paid a flat wage rate, non-dependent on the number of procedures they perform. Thus they would try to minimise the amount of work they have to do, given that more work does not translate to more pay. More work would simply mean more hassle for them.
Conversely, gynaecologists in private practice charge by number of consultations/procedures that they do. Thus their incentives are reversed: they would try to increase the number of procedures that they can perform on you.
Of course, this does not give you an answer on what is the optimal rate of pap smears should be. Perhaps the answer is somewhere in between. Average out the answers between private and public practice gynaecologists and you get 1.5 years. Voila!
Somebody failed Intro Micro
From CNA:
Singapore’s Agency for Science, Technology and Research or A*STAR has set up a laboratory of sorts to test out technologies for an intelligent home of the future… A*STAR projects the idea of the Smart Home will not become a reality for another 10 to 15 years, when demand for the technology could push the price down.
Surely they meant to say “supply” rather than “demand”? It’s either A*STAR or CNA who got their economic principles wrong. I would be amazed if it were one of the whiz-kids at A*STAR.
