Saturday, November 22, 2008
Early decision and early action college admission
The Times updates us on the thriving state of binding early decision, single choice early action, and early action in this year's college admissions: Early-Decision Applications Are Up at Colleges, in Spite of the Economy
Wednesday, November 19, 2008
Market for major league baseball players: international trade
The NY Times reports: Japanese Irked at U.S. Interest in Pitching Phenom
"Many Japanese baseball officials are outraged that United States teams are courting Tazawa, a hard-throwing right-handed pitcher, because they insist it is long-established practice for amateurs like him to be strictly off limits to major league clubs..."
"“This was more than just a gentleman’s agreement, but rather an implicit understanding that the major leagues would do no such thing,” Nippon Professional Baseball said in a news release on signing Japanese baseball amateurs. “That a handful of clubs from the majors is trying to break this gentlemen’s agreement is truly regrettable.”
..."The protocol agreement between Major League Baseball and Nippon Professional Baseball does not address the signing of either nation’s amateur players. It does formalize how Japanese veterans may switch continents: on the open market after nine seasons in the Japan major leagues, or earlier if a player’s club chooses to auction off his rights through a procedure commonly known as posting. Established in 1998, posting established stars like Daisuke Matsuzaka has generated as much as $51 million for their Japanese clubs, and losing top amateurs could hurt that pipeline."
..."The Yomiuri official Hidetoshi Kiyotake has said he fears for the viability of the entire Japanese majors should the major leagues descend on his nation’s amateur talent. In a recent issue of the Japanese magazine Weekly Baseball, he wrote that South Korea’s major league has been seriously harmed by 38 amateur players signing directly with major league clubs since 1994.
..."Fearful that Tazawa’s signing such a contract would encourage more Japanese amateurs to follow him, Nippon Professional Baseball recently passed a rule that requires any amateur who jumps to a major league team to sit out two or three years before being able to return to play in Japan."
"Many Japanese baseball officials are outraged that United States teams are courting Tazawa, a hard-throwing right-handed pitcher, because they insist it is long-established practice for amateurs like him to be strictly off limits to major league clubs..."
"“This was more than just a gentleman’s agreement, but rather an implicit understanding that the major leagues would do no such thing,” Nippon Professional Baseball said in a news release on signing Japanese baseball amateurs. “That a handful of clubs from the majors is trying to break this gentlemen’s agreement is truly regrettable.”
..."The protocol agreement between Major League Baseball and Nippon Professional Baseball does not address the signing of either nation’s amateur players. It does formalize how Japanese veterans may switch continents: on the open market after nine seasons in the Japan major leagues, or earlier if a player’s club chooses to auction off his rights through a procedure commonly known as posting. Established in 1998, posting established stars like Daisuke Matsuzaka has generated as much as $51 million for their Japanese clubs, and losing top amateurs could hurt that pipeline."
..."The Yomiuri official Hidetoshi Kiyotake has said he fears for the viability of the entire Japanese majors should the major leagues descend on his nation’s amateur talent. In a recent issue of the Japanese magazine Weekly Baseball, he wrote that South Korea’s major league has been seriously harmed by 38 amateur players signing directly with major league clubs since 1994.
..."Fearful that Tazawa’s signing such a contract would encourage more Japanese amateurs to follow him, Nippon Professional Baseball recently passed a rule that requires any amateur who jumps to a major league team to sit out two or three years before being able to return to play in Japan."
Europe's first auction of carbon emissions permits
The London Times reports controversy about how the auction revenue should be spent:
Protests as carbon permits auction raises £54m
The Government has provoked anger by saying proceeds of sale will not necessarily be used to tackle climate change issues
"Yesterday's auction marked a departure from the policy of handing out the permits to industry for free."
...
"Campaigners said that the Treasury's decision to put the proceeds into its coffers rather than ringfencing them for use in environmental projects plays into the hands of critics, who fear that the ETS will be treated as little more than a green tax. "
I gather "ringfenced" is an antonym of "fungible."
Protests as carbon permits auction raises £54m
The Government has provoked anger by saying proceeds of sale will not necessarily be used to tackle climate change issues
"Yesterday's auction marked a departure from the policy of handing out the permits to industry for free."
...
"Campaigners said that the Treasury's decision to put the proceeds into its coffers rather than ringfencing them for use in environmental projects plays into the hands of critics, who fear that the ETS will be treated as little more than a green tax. "
I gather "ringfenced" is an antonym of "fungible."
Market for kidneys: Singapore
The Straits Times reports on proposed new kidney legislation in Singapore.
The new legislation would raise penalties for third party brokers, allow compensation for donors (from a single payer, state fund I think), and allow kidney exchange.
"ORGAN trading syndicates and middlemen will be punished more severely if the proposed changes to the Human Organ Transplant Act (Hota) are approved by Parliament.
They will be fined up to $100,000 or jailed up to 10 years or both - 10 times the current penalties.
In Singapore's first-ever organ trading conviction in September this year, Wang Chin Sing, 44, who was fingered as the middleman was jailed a year and two months. "
...
"Two other changes include removing the age limit for cadaveric donation, now set at 60 years, and allowing paired donations. This is where a donor, whose kidney is not a match for a relative, gives it to someone else who also has a relative willing to give up a kidney [kidney exchange]. "
"Earlier this month, an 18-member national committee on medical ethics had supported reimbursing donors so long as the sum is not so large as to become 'an undue inducement, nor amounting to organ trading'.
The draft Bill spells out measures to protect donors' welfare. These include providing them with long-term follow-up care and short-term life insurance coverage for risks linked to surgery. They will also get priority for receiving an organ in case of any organ failure.
On the issue of compensation, it says that this should be for expenses incurred as a result of the donation, and indirect losses such as lost earnings.
Reactions to the proposed changes have been mixed. Religious bodies like the National Council of Churches of Singapore support 'the provision of reasonable compensation' that helps donors allay fears of incurring high medical costs before, during and after the donation.
'These compensations should not provide incentives for donors out to make a financial gain from their donation,' said the council which represents 193 churches and Christian organisations.
Dr Lam Pin Min, deputy chairman of the Government Parliamentary Committee for Health, said that while changes to the upper age limit and allowing paired matching are 'straightforward and non-controversial', he felt the amendment to allow reimbursement remains contentious for several reasons.
'How are we going to determine what is a fair amount to compensate donors and how do we draw a clear line between compensation and inducement?' he asked.
A spokesman for the ministry told The Straits Times that a committee comprising medical professionals and lay persons will be formed once the amended law is passed 'to look into what is considered fair value in terms of compensation and what should or should not be reimbursed'.
Mr Khaw had hinted at a five- or six-figure sum. "
HT to Marginal Revolution, who focus on the latter.
The new legislation would raise penalties for third party brokers, allow compensation for donors (from a single payer, state fund I think), and allow kidney exchange.
"ORGAN trading syndicates and middlemen will be punished more severely if the proposed changes to the Human Organ Transplant Act (Hota) are approved by Parliament.
They will be fined up to $100,000 or jailed up to 10 years or both - 10 times the current penalties.
In Singapore's first-ever organ trading conviction in September this year, Wang Chin Sing, 44, who was fingered as the middleman was jailed a year and two months. "
...
"Two other changes include removing the age limit for cadaveric donation, now set at 60 years, and allowing paired donations. This is where a donor, whose kidney is not a match for a relative, gives it to someone else who also has a relative willing to give up a kidney [kidney exchange]. "
"Earlier this month, an 18-member national committee on medical ethics had supported reimbursing donors so long as the sum is not so large as to become 'an undue inducement, nor amounting to organ trading'.
The draft Bill spells out measures to protect donors' welfare. These include providing them with long-term follow-up care and short-term life insurance coverage for risks linked to surgery. They will also get priority for receiving an organ in case of any organ failure.
On the issue of compensation, it says that this should be for expenses incurred as a result of the donation, and indirect losses such as lost earnings.
Reactions to the proposed changes have been mixed. Religious bodies like the National Council of Churches of Singapore support 'the provision of reasonable compensation' that helps donors allay fears of incurring high medical costs before, during and after the donation.
'These compensations should not provide incentives for donors out to make a financial gain from their donation,' said the council which represents 193 churches and Christian organisations.
Dr Lam Pin Min, deputy chairman of the Government Parliamentary Committee for Health, said that while changes to the upper age limit and allowing paired matching are 'straightforward and non-controversial', he felt the amendment to allow reimbursement remains contentious for several reasons.
'How are we going to determine what is a fair amount to compensate donors and how do we draw a clear line between compensation and inducement?' he asked.
A spokesman for the ministry told The Straits Times that a committee comprising medical professionals and lay persons will be formed once the amended law is passed 'to look into what is considered fair value in terms of compensation and what should or should not be reimbursed'.
Mr Khaw had hinted at a five- or six-figure sum. "
HT to Marginal Revolution, who focus on the latter.
Market for sex workers, and human trafficking
The AP reports UK Government Unveils Plan for Sex Trade Crackdown, which has drawn some nuanced reactions from sex workers and others.
"The British government announced plans Wednesday to make it illegal to pay for sex with women forced into prostitution and to name men who solicit sex on the streets -- measures that prostitutes say will put more women at risk.
As part of the Home Office's ''name and shame'' campaign, people who pay for sex with a prostitute ''controlled for another person's gain'' could face criminal charges and a fine of 1,000 pounds ($1,500).
The crime would be a ''strict liability offense,'' which means men would be held accountable even if they didn't know a woman had been trafficked or was working for a pimp, according to the Home Office."
...
"Sex trade workers, however, said the wording of the proposed law would make it illegal for men to use prostitutes who work for other women at brothels or in other voluntary arrangements.
''This is a very dangerous moral crusade,'' Cari Mitchell, spokeswoman for the English Collective of Prostitutes, said Wednesday. ''What this will ultimately do is drive the sex trade further underground and put the focus on criminalizing clients that, for the most part, women aren't complaining about. This plan is of no benefit to women.'' "
...
"[Home Secretary] Smith said there was no public support for a ''wholesale ban'' on paying for sex and the measures were aimed at cutting down on exploitation."
...
"Under current laws in England and Wales, it is illegal to loiter and sell sex on the streets or elsewhere in public. Keeping a brothel is unlawful, but a lone woman selling sex inside is not. Similarly, paying for sex is legal. But solicitation has largely been tolerated."
"The British government announced plans Wednesday to make it illegal to pay for sex with women forced into prostitution and to name men who solicit sex on the streets -- measures that prostitutes say will put more women at risk.
As part of the Home Office's ''name and shame'' campaign, people who pay for sex with a prostitute ''controlled for another person's gain'' could face criminal charges and a fine of 1,000 pounds ($1,500).
The crime would be a ''strict liability offense,'' which means men would be held accountable even if they didn't know a woman had been trafficked or was working for a pimp, according to the Home Office."
...
"Sex trade workers, however, said the wording of the proposed law would make it illegal for men to use prostitutes who work for other women at brothels or in other voluntary arrangements.
''This is a very dangerous moral crusade,'' Cari Mitchell, spokeswoman for the English Collective of Prostitutes, said Wednesday. ''What this will ultimately do is drive the sex trade further underground and put the focus on criminalizing clients that, for the most part, women aren't complaining about. This plan is of no benefit to women.'' "
...
"[Home Secretary] Smith said there was no public support for a ''wholesale ban'' on paying for sex and the measures were aimed at cutting down on exploitation."
...
"Under current laws in England and Wales, it is illegal to loiter and sell sex on the streets or elsewhere in public. Keeping a brothel is unlawful, but a lone woman selling sex inside is not. Similarly, paying for sex is legal. But solicitation has largely been tolerated."
Organs for transplant: supply and demand
An interesting post at Freakonomics brings to attention a paper in the International Journal of Health Services by Herring, Woolhandler, and Himmelstein titled
INSURANCE STATUS OF U.S. ORGAN DONORS AND TRANSPLANT RECIPIENTS: THE UNINSURED GIVE, BUT RARELY RECEIVE
The subtitle tells much of the story, the paper finds that "16.9 percent of organ donors but only 0.8 percent of transplant recipients were uninsured"
The paper begins with the following story:
"In September of 2005, one of us (Herring), then a third-year medical student, cared for a previously healthy 25-year-old uninsured day laborer who arrived at the emergency department with rapidly advancing idiopathic dilated cardiomyopathy. The patient was ultimately deemed unsuitable for cardiac transplantation.
The decision on transplantation was driven, in part, by realistic concern about the patient’s inability to pay for long-term immunosuppressive therapy and to support himself during recovery. Absent such resources, the likelihood of a successful outcome is compromised (1–4). The clinicians caring for him faced a wrenching dilemma: deny the patient a transplant, or use a scarce organ for a patient with a reduced chance of success. He died of heart failure two weeks after his initial presentation. This tragedy inspired us to examine data on the participation of the uninsured in organ transplantation, both as recipients and as donors."
HT Scott Kominers
INSURANCE STATUS OF U.S. ORGAN DONORS AND TRANSPLANT RECIPIENTS: THE UNINSURED GIVE, BUT RARELY RECEIVE
The subtitle tells much of the story, the paper finds that "16.9 percent of organ donors but only 0.8 percent of transplant recipients were uninsured"
The paper begins with the following story:
"In September of 2005, one of us (Herring), then a third-year medical student, cared for a previously healthy 25-year-old uninsured day laborer who arrived at the emergency department with rapidly advancing idiopathic dilated cardiomyopathy. The patient was ultimately deemed unsuitable for cardiac transplantation.
The decision on transplantation was driven, in part, by realistic concern about the patient’s inability to pay for long-term immunosuppressive therapy and to support himself during recovery. Absent such resources, the likelihood of a successful outcome is compromised (1–4). The clinicians caring for him faced a wrenching dilemma: deny the patient a transplant, or use a scarce organ for a patient with a reduced chance of success. He died of heart failure two weeks after his initial presentation. This tragedy inspired us to examine data on the participation of the uninsured in organ transplantation, both as recipients and as donors."
HT Scott Kominers
Tuesday, November 18, 2008
Matching students to high schools in NYC
The final version of our paper on the design of the NYC high school match is now available: Abdulkadiroglu, Atila , Parag A. Pathak, and Alvin E. Roth, "Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match,'' revised, November, 2008, American Economic Review, forthcoming.
This paper had a long evolution, partly because of the actual work it represents, and partly because of the lengthy and interesting process of figuring out and negotiating (among coauthors and with editors and referees) how to write a paper that properly represents the mix of theory, institutional detail, and empirical work that is integral to practical market design.
This paper had a long evolution, partly because of the actual work it represents, and partly because of the lengthy and interesting process of figuring out and negotiating (among coauthors and with editors and referees) how to write a paper that properly represents the mix of theory, institutional detail, and empirical work that is integral to practical market design.
Monday, November 17, 2008
Incentives for kidneys
Kidney Disease Takes a Growing Toll reports the Times, as a result of diabetes and hypertension. The article touches on the debate about compensation for donors.
Writing of the National Kidney foundation the article says
"The organization has also been criticized by advocates who support financial compensation for organ donors, which the foundation firmly opposes as unethical and unlikely to increase the availability of organs. (In contrast, the American Association of Kidney Patients supports research into how financial incentives would affect organ donation.)"
Writing of the National Kidney foundation the article says
"The organization has also been criticized by advocates who support financial compensation for organ donors, which the foundation firmly opposes as unethical and unlikely to increase the availability of organs. (In contrast, the American Association of Kidney Patients supports research into how financial incentives would affect organ donation.)"
Receivables exchange
The NY Times reports on a new online market in which companies can sell their receivables: An Online Market for Selling I.O.U.’s
"Businesses getting pinched by the credit squeeze can now tap a new source of cash — by selling the money owed to them by other companies.
A new online marketplace, the Receivables Exchange, was formally introduced on Monday after 18 months in development. It allows companies to sell their outstanding receivables at a discount to a panoply of financial institutions."
Truth in advertising: I'm on their advisory board.
"Businesses getting pinched by the credit squeeze can now tap a new source of cash — by selling the money owed to them by other companies.
A new online marketplace, the Receivables Exchange, was formally introduced on Monday after 18 months in development. It allows companies to sell their outstanding receivables at a discount to a panoply of financial institutions."
Truth in advertising: I'm on their advisory board.
Sunday, November 16, 2008
Market for health care: adding choice in Britain
Choice is having an effect on Britain's National Health Service, the Telegraph reports:
NHS hospital units shunned by patients face closure
NHS hospitals units are facing closure as patients choose to be treated in more successful medical centres, new figures show.
"Patients are now able to choose where they are treated, with many snubbing the traditional visit to their local hospital and opting for units with the best treatment records, facilities and, crucially, cleanliness and infection control.
GPs can also choose where to send their patients. Crucially, hospitals no longer receive a guaranteed block grant and are paid according to the number of patients they treat. "
"The internal market reforms were the source of a bitter struggle within the Labour Government. Tony Blair and Alan Milburn, his Health Secretary, fought against union and backbench opposition to force through many of the changes to the way the NHS was run. "
NHS hospital units shunned by patients face closure
NHS hospitals units are facing closure as patients choose to be treated in more successful medical centres, new figures show.
"Patients are now able to choose where they are treated, with many snubbing the traditional visit to their local hospital and opting for units with the best treatment records, facilities and, crucially, cleanliness and infection control.
GPs can also choose where to send their patients. Crucially, hospitals no longer receive a guaranteed block grant and are paid according to the number of patients they treat. "
"The internal market reforms were the source of a bitter struggle within the Labour Government. Tony Blair and Alan Milburn, his Health Secretary, fought against union and backbench opposition to force through many of the changes to the way the NHS was run. "
Gay marriage: protests over election setbacks
I think of bans on who can marry whom as being pure cases of repugnant transactions, namely transactions that some people don't want other people to be able to participate in. In the case of gay marriage, we're seeing the beginning of the end of an ancient ban, but it may not come easily.
The NY Times reports that demonstrations have been held in protest over Proposition 8 in California: Across U.S., Big Rallies for Same-Sex Marriage
"In New York, some 4,000 people gathered at City Hall, where speakers repeatedly called same-sex marriage “the greatest civil rights battle of our generation.”"
"The big crowds notwithstanding, it has been a tough month for gay rights. Proposition 8 was just one of three measures on same-sex marriage passed on Nov. 4, with constitutional bans also being approved in Arizona and Florida. In Arkansas, voters passed a measure aimed at barring gay men and lesbians from adopting children. "
"The protests over Proposition 8 also come even as same-sex marriages began Wednesday in Connecticut, which joined Massachusetts as the only states allowing such ceremonies. By contrast, 30 states have constitutional bans on such unions. "
The NY Times reports that demonstrations have been held in protest over Proposition 8 in California: Across U.S., Big Rallies for Same-Sex Marriage
"In New York, some 4,000 people gathered at City Hall, where speakers repeatedly called same-sex marriage “the greatest civil rights battle of our generation.”"
"The big crowds notwithstanding, it has been a tough month for gay rights. Proposition 8 was just one of three measures on same-sex marriage passed on Nov. 4, with constitutional bans also being approved in Arizona and Florida. In Arkansas, voters passed a measure aimed at barring gay men and lesbians from adopting children. "
"The protests over Proposition 8 also come even as same-sex marriages began Wednesday in Connecticut, which joined Massachusetts as the only states allowing such ceremonies. By contrast, 30 states have constitutional bans on such unions. "
Saturday, November 15, 2008
Organized crime in Japan
The market for crime is organized differently in Japan. The NY Times reports on a local lawsuit involving the headquarters of a yakuza headquarters: Neighborhood in Japan Sues in Bid to Oust Mafia
"The Dojinkai is one of the country’s 22 crime syndicates, employing some 85,000 members and recognized by the government.
Traditionally, the yakuza have run protection rackets, as well as gambling, sex and other businesses that the authorities believed were a necessary part of any society. By letting the yakuza operate relatively freely, the authorities were able to keep an extremely close watch on them."
"The Dojinkai is one of the country’s 22 crime syndicates, employing some 85,000 members and recognized by the government.
Traditionally, the yakuza have run protection rackets, as well as gambling, sex and other businesses that the authorities believed were a necessary part of any society. By letting the yakuza operate relatively freely, the authorities were able to keep an extremely close watch on them."
Thursday, November 13, 2008
British organ donation: opt in versus opt out
The Telegraph reports that A report into organ donation ordered by Gordon Brown will not recommend a system of presumed consent.
"The group ordered to look into the system as a possible solution to a shortage of donors is due to report at the start of next week. It will recommend that ministers work to increase the number of donors but is expected to favour a situation where donors still register to donate organs after their death.
The group is understood to have come under pressure from Muslim organisations to keep the opt-in system.
But senior government figures, including the Prime Minister and Liam Donaldson, the Chief Medical Officer, are understood to believe that presumed consent is the only way to solve the problem. "
The London Times also covers the story, with a different emphasis: Brown’s organ donor plan is rejected by scientists
"Mr Brown has argued previously that presumed consent, already used in Spain and other countries, could help to “close the aching gap between the potential benefits of transplant surgery in the UK and the limits imposed by our current system of consent”. ...
But the taskforce, an expert working group of healthcare professionals, lawyers and ethicists set up to look at ways to increase the number of organ donations, is understood to believe that an opt-out system would do little to boost the number of life-saving transplants. It is expected to say such a move would create practical problems for the NHS and risk a potential backlash among the public.
Last night a senior Whitehall source told The Times: “It’s fair to say this report is not helpful to the case for a change in the law to presumed consent.” "
Thaler and Sunstein will be disappointed too.
Update: Thaler emails me as follows
"Thaler and Sunstein will NOT be disappointed. We favor mandated choice for two reasons. First, presumed consent raises hackles. Second, it leads to more overrides by family since the donor's intentions may be only implicit.
Illinois has adopted this with zero fanfare. When you renew your license they just ask you "donor or not donor". Perfect."
"The group ordered to look into the system as a possible solution to a shortage of donors is due to report at the start of next week. It will recommend that ministers work to increase the number of donors but is expected to favour a situation where donors still register to donate organs after their death.
The group is understood to have come under pressure from Muslim organisations to keep the opt-in system.
But senior government figures, including the Prime Minister and Liam Donaldson, the Chief Medical Officer, are understood to believe that presumed consent is the only way to solve the problem. "
The London Times also covers the story, with a different emphasis: Brown’s organ donor plan is rejected by scientists
"Mr Brown has argued previously that presumed consent, already used in Spain and other countries, could help to “close the aching gap between the potential benefits of transplant surgery in the UK and the limits imposed by our current system of consent”. ...
But the taskforce, an expert working group of healthcare professionals, lawyers and ethicists set up to look at ways to increase the number of organ donations, is understood to believe that an opt-out system would do little to boost the number of life-saving transplants. It is expected to say such a move would create practical problems for the NHS and risk a potential backlash among the public.
Last night a senior Whitehall source told The Times: “It’s fair to say this report is not helpful to the case for a change in the law to presumed consent.” "
Thaler and Sunstein will be disappointed too.
Update: Thaler emails me as follows
"Thaler and Sunstein will NOT be disappointed. We favor mandated choice for two reasons. First, presumed consent raises hackles. Second, it leads to more overrides by family since the donor's intentions may be only implicit.
Illinois has adopted this with zero fanfare. When you renew your license they just ask you "donor or not donor". Perfect."
Repugnant transactions in Inauguration tickets
eBay to Ban Resale of Inaugural Tickets
"eBay Inc. is banning the sale of coveted free tickets to the swearing-in of President-elect Barack Obama after a U.S. senator said she was crafting a bill to make such online sales a federal crime.
Representatives of the online auction site met with the Joint Congressional Committee on Inaugural Ceremonies this week and came to a mutual decision on the prohibition, said Nichola Sharpe, a spokeswoman for eBay.
“The tickets are free. We felt that it is an official event,” Sharpe said in an interview today. “We think it’s in the best interest of all concerned.”
Sen. Dianne Feinstein (D-Calif.), chairman of the committee, announced Monday that she was contacting sites, like eBay and Craigslist, to ask them to stop selling the tickets to the Jan. 20 event. She also said she was drafting legislation to criminalize the sales. "
"eBay Inc. is banning the sale of coveted free tickets to the swearing-in of President-elect Barack Obama after a U.S. senator said she was crafting a bill to make such online sales a federal crime.
Representatives of the online auction site met with the Joint Congressional Committee on Inaugural Ceremonies this week and came to a mutual decision on the prohibition, said Nichola Sharpe, a spokeswoman for eBay.
“The tickets are free. We felt that it is an official event,” Sharpe said in an interview today. “We think it’s in the best interest of all concerned.”
Sen. Dianne Feinstein (D-Calif.), chairman of the committee, announced Monday that she was contacting sites, like eBay and Craigslist, to ask them to stop selling the tickets to the Jan. 20 event. She also said she was drafting legislation to criminalize the sales. "
Market for lawyers
A NY Times article reports that the recession is causing some law firms to contract: Law Firms Feel Strain of Layoffs and Cutbacks .
It contains two insights into the market that struck me:
"Lawyer departures, whether voluntary or through layoffs, pose special risks to firms. Layoffs scare off law school recruits, who crave security and wealth. "
“Clients often don’t want to invest in discretionary litigation in a downturn,” Mr. Younger said. Responding to government investigations has been keeping lawyers busy but does not generate continuing work for armies of associates, like a big lawsuit does, he said. “There are tons of government investigations going on now.”
It contains two insights into the market that struck me:
"Lawyer departures, whether voluntary or through layoffs, pose special risks to firms. Layoffs scare off law school recruits, who crave security and wealth. "
“Clients often don’t want to invest in discretionary litigation in a downturn,” Mr. Younger said. Responding to government investigations has been keeping lawyers busy but does not generate continuing work for armies of associates, like a big lawsuit does, he said. “There are tons of government investigations going on now.”
Wednesday, November 12, 2008
Treasury abandons plans for reverse auction to purchase troubled assets
The Treasury announced today what had already become clear, which is that it has abandoned the initial plan to purchase troubled assets, in favor of buying equity in troubled companies: Remarks by Secretary Henry M. Paulson, Jr. on Financial Rescue Package and Economic Update
"As credit markets froze in mid-September, the Administration asked Congress for broad tools and flexibility to rescue the financial system. We asked for $700 billion to purchase troubled assets from financial institutions. At the time, we believed that would be the most effective means of getting credit flowing again.
During the two weeks that Congress considered the legislation, market conditions worsened considerably. It was clear to me by the time the bill was signed on October 3rd that we needed to act quickly and forcefully, and that purchasing troubled assets – our initial focus – would take time to implement and would not be sufficient given the severity of the problem. In consultation with the Federal Reserve, I determined that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks. "
HT to Eric Budish (a market designer on the market)
"As credit markets froze in mid-September, the Administration asked Congress for broad tools and flexibility to rescue the financial system. We asked for $700 billion to purchase troubled assets from financial institutions. At the time, we believed that would be the most effective means of getting credit flowing again.
During the two weeks that Congress considered the legislation, market conditions worsened considerably. It was clear to me by the time the bill was signed on October 3rd that we needed to act quickly and forcefully, and that purchasing troubled assets – our initial focus – would take time to implement and would not be sufficient given the severity of the problem. In consultation with the Federal Reserve, I determined that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks. "
HT to Eric Budish (a market designer on the market)
Tuesday, November 11, 2008
Market for medical services: time of day
Timing is an important part of many markets: Beth Israel Medical Center in NYC is experimenting with a 24 hour a day clinic for non-emergency services, intended to serve parts of the market that have trouble making appointments during standard doctors' hours: When You Just Have to Get a Flu Shot... at 3 A.M.
Monday, November 10, 2008
Market for spam
The BBC, reporting on the work of Stefan Savage, director of UCSD's Collaborative Center for Internet Epidemiology and Defenses, says that the number of sales generated by spam are surprisingly small, so that spam networks might be vulnerable to measures that would increase their costs even slightly: Study shows how spammers cash in
Savage's study involved sending his own spam, he must have had an interesting conversation with UCSD's Institutional Review Board (i.e. human subjects committee...)
Savage's study involved sending his own spam, he must have had an interesting conversation with UCSD's Institutional Review Board (i.e. human subjects committee...)
Sunday, November 9, 2008
College admissions, international
Harvard's director of admissions visits China: Colleges scour China for top students
"There are no quotas, no limits on the number of Chinese students we might take," Fitzsimmons told a standing-room-only crowd of more than 300 students during a visit to Beijing No. 4 High School. "We know there are very good students from China not applying now. I hope to get them into the pool to compete."
"There are no quotas, no limits on the number of Chinese students we might take," Fitzsimmons told a standing-room-only crowd of more than 300 students during a visit to Beijing No. 4 High School. "We know there are very good students from China not applying now. I hope to get them into the pool to compete."
Saturday, November 8, 2008
Market for check cashing and payday loans
The NY Times has a nuanced article about the business and recent sale of a big check cashing chain: Check Cashers, Redeemed
"Selling to the poor is a tricky business. Poor people pay more for just about everything, from fresh groceries to banking; Prahalad, the economist, calls it the “poverty penalty.” They pay more for all kinds of reasons, but maybe most of all because mainstream firms decline to compete for their business. Nix has served customers that traditional financial institutions neglected, but he has also profited from that neglect. Whether he profited too much, charging poor communities what the market would bear — that’s a moral question as much as an economic one. And there’s no simple answer. "
"Selling to the poor is a tricky business. Poor people pay more for just about everything, from fresh groceries to banking; Prahalad, the economist, calls it the “poverty penalty.” They pay more for all kinds of reasons, but maybe most of all because mainstream firms decline to compete for their business. Nix has served customers that traditional financial institutions neglected, but he has also profited from that neglect. Whether he profited too much, charging poor communities what the market would bear — that’s a moral question as much as an economic one. And there’s no simple answer. "
Subscribe to:
Posts (Atom)
Posts
