NCAA Bracket Pool Party

While others are picking schools based on their name, mascot, colors or football team, you can use some analysis and strategies to win (or at least not completely lose) your pool. The article below argues that you use should the wisdom of crowds and base most of your picks off of the 'national bracket', that way you are at least average and will not come in last. The bigger the pool you play in, the better the national bracket will do because of the increasing sample size. The national bracket did reasonably well in the first round. It did not get any of the big upsets right, but who else did. It was ok in games between the more evenly matched teams (Northern Iowa vs. UNLV) though it did miss some. The article goes into more detail about how to improve your chances by looking for "bargains", games that you think the national bracket has the highest probability of getting wrong and picking opposite. It is worth a read even if you are not a sports fan.

How to Win Your NCAA Pool

Economics Blogs

Hello all you economics fans! Here is a link I found with 30 of the best economics blogs on the web, some of them are even better than this one. Check it out and increase your utility; who knows, maybe you'll find a new favorite (other than BSing, of course).

Click the title of this post, or copy/paste this into your URL:

http://online.wsj.com/article/SB124768581740247061.html

-Brandon

Opportunity Cost and Pitching

A good illustration of the opportunity cost of a pitcher trying to pitch inside:



Opportunity cost is usually defined as what you give up when you get something else. In this case the pitcher is trying to establish that he will pitch on the inside part of the strike zone (close to the batter). When the pitcher tries to 'get' the inside part of the strike zone, he runs the risk of hitting the batter (and making him very mad). In this case the pitcher is giving up some (maybe all) of his personal safety when he pitches inside.

I enjoy trying to illustrate concepts with unique applications. Does anybody see any other
applications from this video?

-Brad

(HT Deadspin)

Effectiveness of OSHA

I found this graph while doing research for a policy memo on the effects of the Occupational Safety and Health Administration.  Using this data (post 1969, of course), OSHA is currently pushing for a $14.5 million increase to its $573 million budget.

-Brandon

Lead-Footed Drivers Can Save the Economy

I had an eye appointment Friday in Augusta and, of course, I was running late.  I had spent too much time having lunch with some friends and was most likely going to have to reschedule the visit for some time in the distant future; however, always up for a challenge, I jumped in my car and started driving at my normal speed, 10 over, in hopes of making it there on time.  As I turned onto the Fall Line Freeway I noticed the speed limit had been increased from 55 mph to 65 mph.  I smiled, sped up, and made it to the doctor's office with 5 minutes to spare.

This got me thinking of the economics behind the raised speed limit.  I was able to enjoy added utility by eating lunch with friends, gained utility from arriving at my appointment on time, the doctor and I engaged in a mutually beneficial transaction, I didn't have to reschedule and make the journey again (which would create a whole mess of implicit and explicit costs), and I gained some extra utility just from the fact that I enjoy driving fast.  And all these benefits came with almost no negative effects on anyone, as I passed very few other cars on my trip down the Freeway (while smiling, a positive externality I chose not to charge them for).

I haven't done any research on other people's preferences, but I believe I'm not the only person who would appreciate a higher speed limit on the states highways in areas where it would be safe (not near schools and residential areas, like the portion of the Fall Line Freeway I traveled.)  Higher speed limits would decrease the transaction costs of trade, as less time would be spent traveling.  Due to lower transaction costs, people would be more willing to engage in trade, therefore boosting the economy, something that would help the US get out of our current recession.  Again, this is assuming the benefits from driving faster outweigh any marginal costs.  Lots of research would need to be done before the state raises speed limits across the board.  But as a lead-footed college student who hates speeding tickets, I'm all for it.

What is the price of football tickets?

Many times we think of price in terms of the dollars we pay for a good or service. However, there are times when prices do not reflect the true cost or benefit that you experience when you purchase something. Next season if you happen to go to a Miami Dolphins game that is played during the day you can pay a little more and sit in the shade. This is such a good idea that I am surprised someone has not thought about it before now. Ticket prices are usually based on how far you are from the action on the field, but that is not the only factor that affects your enjoyment of the game. If someone really dislikes being hot, they might prefer a seat in the upper deck in the shade to a seat in the lower level in the sun. There is an opportunity in a case like that for price differentiation. I noticed something similar when I went to an afternoon UGA football game. The section where alumni typically sit is in the shade for most of the game, whereas the student section and upper deck are in the sun for the entire game. Alumni get that benefit because they pay ("donate") to be able to buy season tickets. Sometimes things that should factor into a price just are not accounted for.

Miami Dolphins story:

For $5 more, Miami Dolphins fans can have it made in the shade

-Brad

Budget Cuts

State budget cuts are front page headlines these days, no matter where you are in the country. Recently the Georgia General Assembly asked for 300 million dollars of more cuts from higher education. Each University or College have proposed their share of the total, but as you can see from the table below, some schools are cutting more than others. There are various reasons (funding levels, recent funding grants, mission, lobbying, etc.) for the differences but what I find more interesting is the process and the economics behind it.

When each University or College announces their proposed cuts, they have an incentive to propose cuts that are less than what they could stand. Each schools also has an incentive to propose cuts that appear devastating (UGA cutting 4-H, GCSU cutting so many faculty positions that it would put programs at risk for accreditation, etc.). If proposed cuts appear devastating to a school, the Board of Regents or General Assembly may be less likely to cut from those schools. There are many more dimensions to this process and this type of bargaining goes on every year, in any sector.

Last week it was also announced that tuition for public colleges and universities in Georgia may have to increase as much as 77%. I, for one, do not believe that tuition will increase that much for various reasons. First, it will bankrupt the popular HOPE scholarship, which is already in trouble financially. Second, it is an election year and no state politician will want any mention of these type of cuts showing up in campaign ads and the reasons go on and on. I think that this is also a part of the bargaining process and that the 77% figure is meant to get press and apply pressure. That announcement was probably made to allow officials to settle on a smaller tuition increase later. If you announce a possible 77% increase and settle for a 30% increase, it looks better politically and when it comes to budget issues, politics is everything.

University	Proposed Cut as a % of 2010 Budget
Georgia Tech	3.70%
Medical College of Georgia	4.04%
Fort Valley State University	4.59%
Savannah State University	4.87%
University of Georgia	5.12%
Gordon College	5.15%
Georgia Southwestern State University	5.23%
Valdosta State	5.27%
Georgia College and State University	5.31%
Albany State University	5.34%
Clayton State University	5.43%
Georgia State University	5.54%
Kennesaw State University	5.72%
Gainesville State College	5.75%
Georgia Southern University	5.78%
University of West Georgia	5.88%
North Georgia College and State University	5.90%
Southern Polytechnic State University	5.93%
Georgia Gwinnett College	6.14%
Dalton State College	6.24%
Abraham Baldwin Agricultural College	6.34%
Armstrong Atlantic State University	6.48%
Middle Georgia College	6.58%
Columbus State University	6.58%
Augusta State University	6.73%
Macon State College	6.99%
College of Coastal Georgia	8.06%

An executive summary of proposed reductions: http://www.usg.edu/fiscal_affairs/documents/executive_summary.pdf

The overall summary of institutional reductions: http://www.usg.edu/fiscal_affairs/documents/summary_of_reductions.pdf

-Brandon and Brad

The Coolest/Nerdiest Thing I Saw Today

I think this may become a recurring post.

Where you the kid in algebra that tried to make pictures with your graphing calculator? Well, I was but I never tried to write my name. The coolest thing I saw today was a website that will allow you to write your name (or any other word) and see what you would have to type into a graphing calculator to get a similar result. Here is my name as an example, go try it for yourself:

http://www.xamuel.com/inverse-graphing-calculator.php?phrase=Brad+Cone

(Hat Tip to Marginal Revolution)

-Brad

B.S.ing Economics-Welcome

This is a blog started by GCSU students Brandon Williams and Brad Cone to share our observations and thoughts as we pursue our B.S. in Economics. The purpose of this blog is to be a conversation about things we find interesting. Most of the posts will be related to economics, but we will likely post about other subjects. We will try to be serious most of the time but we reserve the right to be comical because we are still undergraduates and that is what we do. We will also try to be relevant with the issues we discuss and we will try to write so that anyone with a basic understanding of economics can join in the discussion. If want more information about something we post or you happen to disagree with us or just think we are wrong, please tell us in the comments or in an email and provide some justification. We want this to be a place where things are discussed and debated. Thank you for visiting and we hope you enjoy!

-Brad and Brandon