"If you can demonstrate that McDonald’s only introduces the sandwich when pork prices are lower than usual, then you’re but a couple logical steps from concluding that McDonald’s is essentially exploiting a market imbalance between what normal food producers are willing to pay for hog meat at certain times of the year, and what Americans are willing to pay for it once it is processed, molded into illogically anatomical shapes, and slathered in HFCS-rich BBQ sauce." The McRib as arbitrage of pork prices.

"If every additional user is putting money in the developers' pockets, then you're less likely to see the site disappear overnight." Yep. This is all quite sensible, and something I've long believed. (See also: Garrett Murray's pleading requests for Tumblr to let him pay for it).

Bookmarked because I'm fed up of watery allusions to this (last seen: Malcolm Gladwell, Freakonomics (which is annoying because it's watery despite Levitt having *worked on the paper*)). $5 for the *actual information* seems far more interesting than any volume of popular economics books.

"In 1986, Williams High Speed changed the economics of pinball forever... Pre-1986, the replay score was hard wired into the game unless the operator manually re-programmed the software. High Speed changed all that. It was pre-loaded with an algorithm that adjusted the replay score according to the distribution of scores on the specified machine over a specific time interval." Good article on how the economics of pinball are wired into the machine.

"You'll need several thousand gold to launch the business, and then keep it up for many weeks before you make a steady good profit every week. And you'll need to log on every day and spend several hours per week just to keep your glyph business up and running. In the end, getting rich in World of Warcraft works exactly like getting rich in the real world: You need a venture capital to start up a business, hard work, and perseverance. And this is exactly why getting rich with inscription works so reliably in World of Warcraft: It is hard work, there isn't all that much you can actually do with an income of thousands of gold per week, and thus the large majority of players simply can't be bothered doing it."

The last keffiyeh factory in Palestine is going out of business; they're all made in China now. Well done, hipsters!

"...once we return to the sun, late on in our economic history, are we still innocent enough to view it this way? The sun isn't so very different from the Beatles back catalogue - there's a lot of it around, you can't control it, we value it highly, it's a 'public good problem' - but the Beatles are subject to various legal and political protections, most recently retrospective copyright extension. If EMI are allowed to profit from music that they didn't create, might not North Africa have some right to profit from energy that it didn't create?" Some brilliant stuff from Will Davies

"For the past three decades, Popovich has been one of a secret tribe of big game hunters who specialize in stealing jets from the jungle hideouts of corrupt landowners in Colombia, Mexico and Brazil and swiping go-fast boats from Wall Street titans in Miami and East Hampton. Super repos have been known to hire swat teams, hijack supertankers and fly off with eastern bloc military helicopters. For a cut of the overall value, they'll repossess anything." As jobs go, this one is pretty extreme; it's a great article.

Castronova's paper on whether the Law of Demand, as it works in the real world, also works in the virtual.

"Maybe [games publishers] think there could never be enough competition, excitement, betrayal, surprise, defeat, skull-daggery, and general griefer-worthy assholeishness in a game without direct conflict. But the last year’s worth of news out of Wall Street tells a different story. It’s a tale of a system corrupted from the inside by the scheming, cheating, gaming of a few powerful and greedy individuals. If this is not prime material for a videogame, I don’t know what is."

"I have this idea in the back of my head -- a fool idea of course -- that one day, people with the power to do something about it might stumble across the notion of "a stable business ecosystem," and conclude that actually, to sustain industry growth and survival, you might conceivably, you know, want to let developers potentially make a buck from time to time, even if publishers and retailers have the power to strangle them. That rewarding development success breeds more development success, and gives heart to those who want to create good games." I knew about 3D Realms (which is a shame), but not about Gamelab (which is also a shame). Also: Greg speaks Truth.

"...these various numbers are tossed around like so many doggie treats, so I thought I'd take Google Sketchup out for a test drive and try to get a sense of what exactly a trillion dollars looks like." A nice, simple piece of amateur informatics that is a good wake-up call.

"Dubai threatens to become an instant ruin, an emblematic hybrid of the worst of both the West and the Middle-East and a dangerous totem for those who would mistakenly interpret this as the de facto product of a secular driven culture." Which puts it nicely, but god, this is depressing.

"Economics has been defined as the science of distributing limited means among unlimited and competing ends. On 12th April, with the arrival of elements of the 30th U.S. Infantry Division, the ushering in of an age of plenty demonstrated the hypothesis that with infinite means economic organization and activity would be redundant, as every want could be satisfied without effort." Remarkable article; fascinating for its subject matter, when it was written, what it describes, and the patterns that hold up inside such a regimented economy. A must-read, really - can't believe it took me so long to get around to it.

"Soon enough, amid the daily grind of his obsession, he would see in the game itself a way out of the bleak hole he had fallen into. He would take a clear-eyed, calculating look at what he and his fellow players had been doing all those months—at the countless hours they'd given over to the pursuit of purely virtual but implacably scarce commodities—and he would recognize it not just for the underexploited form of productivity it was but for the highly profitable commercial enterprise it might sustain." Fantastic article from Julian Dibbell on IGE, the massive real-money trading operation.

"China's State Administration of Taxation announced that it will impose a 20 percent personal income tax on profit from virtual money." Woah, the 21st Century really did hit, didn't it?

"It’s somewhat embarrassing, but that’s how I got into economics: I wanted to be a psychohistorian when I grew up, and economics was as close as I could get." Paul Krugman, you are the best.

"The Theory of Interstellar Trade is a paper written in 1978 by economist Paul Krugman.... Krugman analyzed the question of 'how should interest rates on goods in transit be computed when the goods travel at close to the speed of light? This is a problem because the time taken in transit will appear less to an observer traveling with the goods than to a stationary observer.'" Paul Krugman, winner of the 2008 Nobel Prize for Economics, is officially awesome.

"Over the last few years, there has been a big shift in power and success away from independent studios, and towards in-house, publisher-owned studios. This has been driven by several things, sound economic reasons, competitive reasons, and because the strong independent studios had done a good job at creating a slew of new IPs (which publishers were eager to snap up, as always). In my experience relatively few people in the games industry realise this... So, what’s next? What’s going to happen over the next 3-5 years?" Adam on the business of the games industry, and what's facing it next.

"You read a lot (in incandescent threads devoted to the topic) about how ten dollars is the "sweet spot" for Live Arcade titles, and that may be the case, but we should entertain the idea that its creator wasn't trying to make an "Xbox Live Arcade Game." Perhaps he was trying to make a good game, the best game he could, and Microsoft's Broadening Initiative For Digital Content was the last thing on his mind." Tycho is pretty much right; the whole Braid-pricing issue isn't just a non-issue, it's maddeningly stupid, and people - including Microsoft - need to get over it.

"Wetherspoons is a model of market efficiency. Prices are low, economies of scale are passed on to consumers and people are offered real choice, on the assumption that they are intelligent enough to deal with it."

"[Sony]... lost USD 2.16 billion on PS3 in 2007, and a further USD 1.16 billion this year... the company has warned investors that ... 'the large-scale investment...may not be fully recovered'" This isn't sustainable, guys.

A good article, until the last sentence which made me VERY ANGRY.

"Zillionics is a new realm, and our new home. The scale of so many moving parts require new tools, new mathematics, new mind shifts."

"With these three agreements — which distilled months of social justice exploration into a few simple tenets of community use of resources — we returned the Legos to their place of honor in the classroom." Wonderful article about education.

"Are smart people overrated?"

"Pacific Gas & Electric is giving companies cash rebates for using virtualization software to consolidate their applications onto fewer servers." Interesting approach to a global issue.

There’s nothing wrong with a service that appeals to tens of thousands of people, but in a billion-person internet, that population is also a rounding error. If most of the people who try Second Life bail (and they do), we should adopt a considerably mo

These marketing strategies are bogus forms of anti-capitalism, fraudulent denials of the unbreakable-but-contradictory relationship between quantity/exchange value and quality/use value. Between them, they promise a new economic culture, in which 'economy

Some useful financial stats on gaming