Relational capitalism

Michael Schulter has some interesting ideas on improving the relationships within and without the company here.

Political Economics and the budget surplus.

Ross Gittins makes some interesting points here about the current level of economic literacy in the electorate. He criticises the leaders of the political party representing the economic elite in Australia. The business economists are lambasted for hypocrisy and cowardice. And he also has a shot at rival newspapers. Read it for some interesting economic journalism. 

The internet and competition in markets

Ross Gittens, Sydney Morning Herald today explains why the internet is such a boost to the efficiency of production and consumption. The lower search costs offers incentives for competitors to enter markets increasing supply. With price the most important variable in purchase decisions, lower search costs lead to lower prices and more competition.
Oligopolies use marketing to differentiate and maintain margins.
Questions thus arise.
Does the technical nature of the internet make anti competitive behaviour possible?
Should attempts to control the flow of information on the internet be seen as anti-competitive?

Equity allocation in a SMSF

It is my belief keeping 25% cash is appropriate in the asset allocation of the current SMSF portfolio.

Economics of Sport

I love the new field of sport economics. So much emotion and money. The Journal of Sports Economics has some fascinating articles.

Priceless

After reading 'Priceless' by William Poundstone I am completely convinced behavioural decision theory is worth more research. So much is applicable to behavioural economics.
A particularly useful concept anchoring. Its successful use in setting damages claims in US courts is now on trial here in Australia as retailer David Jones is listed as respondent in a Supreme Court of NSW damages claim.

More research required

There is a suggestion of growing disenchantment with the compulsory aspect of the provisions of the Superannuation Act (citation needed).

With nearly two trillion dollars now invested via the superannuation system in Australia and fast approaching the size of the Japanese savings pool, perhaps more research is needed into the returns of super funds relative to the risk free rate.

Furthermore, superannuation plan members are increasingly aware of the difference in returns to agents of the enterprise and them.

We propose a set of questions for plan managers:
1. What is the trend in management expense ratio's?
2. What is the minimum plan size for efficient financial management?

And we propose a set of questions for plan members:
1. Would you like a Federal Government guarantee for your money on deposit?
2. Should it be the law all shares held by plan managers are required to vote these shares at all company meetings?
3.Should such votes be made available on the internet for the benefit of members?

At last, economics we can dance to...