Archive for August 9th, 2012

Valuation of innovation: The case of iPhone

August 9, 2012

Nice paper by bank of Finland econs – Timo Korkeamäki & Tuomas Takalo.

They measure valuation of i-phone innovation by seeing its impact on stock price of Apple:


If people can’t have bread, let them eat phones….

August 9, 2012

Indian government has decided to give free mobile phones to all people below poverty line (BPL). It will also have 200 mons of talktime pre-loaded on the phone.

Couple of reactions:

  • This is being seen as a warm up to 2014 elections by most critics.
  • TGS Blog, the fervent critic of current Indian govt. policies is of course not amused.
  • ET edit says at one hand govt. increases the mobile tariffs through its new spectrum licences, on other doles out free mobile

As a lot has been discussed, not much to say. Just reminds me of the French Queen who on receiving complaints that people  do not have food to eat, said “let them eat cake”. The current government chooses to replace cake with phones….

I just hope this is a rumor….Not really sure what is going on with the current government…

Death of a Metaphor: The Invisible Hand

August 9, 2012

A nice perspective by Prof. Asad Zaman of International Institute of Islamic Economics. I just got this interestingly titled paper from SSRN update and was hooked.

He questions this deeply ingrained free market thinking in the econ profession. Much of this thinking goes to the magical words of Adam Smith- invisible hand. Zaman says Smith used invisible hand as a metaphor to describe economic forces. However, the metaphor was soon dead as econs accepted invisible hand as the real thing.


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