Why is it so difficult to find toilet paper amidst the COVID-19 crisis? Conventional wisdom is that people have been irrationally hoarding, but a more likely explanation involves the ways in which supply chains between retail and institutional consumers have been disrupted and are unable to quickly adjust.
As more people engage in “teleworking” from home due to being on lockdown due to COVID-19, sales of tops have increased – since that’s all that shows on the webcam. Walmart also reports increased sales of home entertainment items, as both adults and kids spend more time at home.
Sales of baby chicks often rise before Easter, but this year’s increase has been extraordinary due to a variety of factors influenced by COVID-19: people are staying home with time to spend, while egg prices have increased 50% in some parts of the country due to increased demand, and eggs are difficult to find on shelves in some cities.
Last week, the world learned that a deadly, fast-moving disease called the coronavirus had appeared in several Chinese cities. The mysterious illness has already killed more than a hundred people and infected thousands more, leading the World Health Organization to declare the coronavirus a global health emergency. Despite its potentially worldwide implications, though, right now the disease is primarily localized in China. Along with placing entire cities on quarantine, Chinese authorities have also extended the annual Lunar New Year holiday so that businesses will remain closed until at least next week.
The tragic and unexpected death of Kobe Bryant has caused a large spike in demand for his autographed and game-worn memorabilia. Some collectors are choosing to hold on to their merchandise, while others are cashing out now and even trying to buy more so they can sell it at a higher price in the near future. This article explores the personal and economic incentives for holding on to rare memorabilia in a case like this.
“If keeping track of all the new stuff feels overwhelming, that’s kind of the point. Amazon wants people to feel like it’s coming out with so much that no one can keep up.”
Although only 6 percent of the U.S. identifies as vegan, animal-free foods like meatless burgers and veggie-based snacks have exploded in popularity recently. This video looks at why the animal alternative market could grow into a $140 billion industry as consumers include more vegan foods in their diets.
You probably don’t expect to learn much about economics in Food & Wine magazine, but here is a great story about the “craft fishing” industry. It includes economic concepts such as “catch shares” (to decrease overfishing), economies of scale, and product differentiation and improving quality to move a market from perfect competition to monopolistic competition. It details how one fisherman has worked to change the supply chain to a direct-to-consumer model that provides the consumer (restaurants) with higher quality fish that they can sell to discerning diners at higher prices, and also helps the fishermen ensure adequate compensation for their efforts.
This article may be a bit dated, but it’s an intriguing story about the difficult moral situations that sometimes come about in markets. In most urban areas, property or sales taxes are used to fund a fire department, which puts out any fire in the city. But in some rural areas, there are not enough people to support a fire department, so they have to purchase fire insurance from a nearby fire department. What happens when you don’t pay your annual fire insurance bill and your house catches on fire? Read the story to find out.