An information campaign on energy usage would have made a lot of economic sense
The prime minister’s apparent veto of a plan to persuade people to use less energy this winter has stirred up controversy. The usual rabble have been quick to decry Liz Truss for abdicating responsibility, following the old lines of those who wanted more or less restrictions during the pandemic. But economic theory can readily justify […]
On coronavirus, governments have been the most irrational of us all
Decisions, whether by individuals, companies or governments, are often made with imperfect and incomplete information. This is so obvious as to hardly seem worth stating. But for well over a century economic theory assumed that decisions were made with complete information. Economists knew full well that this was not always the case. The problem was […]
Creepy micromanagement won’t drive productivity — try trusting staff instead
Calling all employers: what was in your Christmas stocking? Did you find the latest gadget designed to enhance productivity? The innovative device, featured in the media during the festive season, is a toilet with a downward sloping seat. The company which makes it, StandardToilet, has conducted extensive tests. A slope of 13 degrees is exactly […]
Forget exploitation, motorists choose to pay sky high fuel prices
Politicians have an irresistible urge to meddle. The latest example is the fanfare orchestrated just before Easter by Chris Grayling, the transport secretary. He wrote to the Competition and Markets Authority (CMA) to criticise the price of fuel at motorway service stations. Grayling called for the UK’s three biggest operators – Moto, Welcome Break, and […]
