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What do you think of the reasoning presented in this picture? According to you, there's there a mistake and if so, which?

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I just found a discussion on the program C in Air. The question that is asked is a question that has long preoccupied philosophers and economists in the past centuries, but has been relatively neglected by economists during the last century: what is the fair price of a product?

The question arises in the case of clothing. Does the seller make obscene profits by setting a price too high? Are we the traders are "stealing" by selling overpriced clothing with indecent margins?

While economists have ceased interest in the issue because they became aware of the existence of market forces that drive (or not) the price to its "fair price". This idea is summed up well in the remark of a speaker who says: "But if you think that traders earn a good living if you have to do is install and set up your business." Implicitly, it takes an argument of classical economic analysis: whether competition is working well , then a price can not remain permanently above its "fair value". New entrants will be attracted by the "obscene profits" and lead a price war with incumbent firms. Therefore, the right price is nothing between the prevailing price when competition is intense, which is still the case in the clothing market (this is the position that I supported in the comments of this ticket).

So if you think prices are too high, either you're not patient enough and that we must wait until competitors are installed on the market, that competition does not play his work. The latter is probably the most convincing explanation. For example, many people are offended by the fact that pharmaceutical companies sell drugs to unaffordable to developing countries. Are they right to be offended? Yes, because patents are a way to protect a company from the competition and allow it to charge very high prices. The purpose of patents is to give a bonus to the company as a monopoly power in order to encourage them to innovate, but it woefully inefficient .

another example. Should we yell from flying towards the cost of texting ? Yes, because here, few new entrants are allowed (just look at the boat as it was to allow Free to enter the market). It is therefore likely that traders tend to SMS overcharged by conducting a tacit understanding. If so, the price is too high and regulation may be necessary.

The conclusion I reach is that whether a price is too high, it will not necessarily make much sense to look at the margins of firms. It is better to see if a new entrant can easily enter the market. It was then immediately realize that in supermarkets, prices are probably too high because of regulations that impede the entry of new competitors .

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Should a liver transplant to Jean-Charles? Prof. Prof.

Let me introduce you to a fictitious person after my twisted imagination: Jean-Charles (JC for intimate). Jean-Charles was an alcoholic. He tried several times to back up the hill but without success. Currently, he is unemployed and his family are worried that it spends too much of his unemployment benefits to satisfy his penchant for drinking. While it does not have an easy childhood - he holds his father's alcoholism - but "This is not an excuse!" said her brother who, himself, believes he succeeded in life with the same constraints.

Unfortunately, the state of the liver by Jean-Charles has deteriorated recently. Suffering from cirrhosis for some time, it will need a liver transplant in the coming months. Organs are scarce, if can find a liver nine Jean-Charles, this will necessarily be to the detriment of another person.

I suggest you put yourself in the shoes of a decision-maker, which recently received a liver in good condition. In the waiting list for transplants, it is the turn of Jean-Charles. Will you allow that liver transplant, or would you give to someone else who "deserves better"?

Behind this question of social justice perverted creeps another question, more socio-economic development: are we responsible for our health? Jean-Charles is an alcoholic, so some will say, "he many sought his cirrhosis! ". If he had been the effort to wean his alcoholism, he would not be here. Others, however, take his defense by pointing to the fact that his own father was an alcoholic and therefore it is rather a victim of circumstances in which he lived.

Efforts and circumstances are two elements that may explain the fact that some are healthy and others not. The question is whether the inequalities in health are rather due to one or the other. And the answer, provided by Sandy Tubeuf Florence Jusot and Alain Trannoy , stark in favor of the two variables!

At this stage of the ticket, I take paris! In your opinion, what is the right answer?

Well, according to their work, the circumstances are much more important determinants of health efforts. The ups and downs of childhood explain between 25% and 40% of inequalities in health, while effort is only responsible for 6% to 10% of inequality (the rest is related to demographic factors).

We should therefore perhaps not blame Jean-Charles for what happens to him, because ultimately, what this work shows is that if one had been in his place, he would most likely follow the same path.

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real or virtual? The invasion of martingales

I just attended a course in evolutionary game theory. This course was given by Ben Polak Yale University. Yet I am not party to the United States. I just looked at the course here because the university has had the excellent idea to film it and put it online for free.

How would you feel if your friend told you he took lessons from a teacher on the internet? The first thing we said is that it's worse than the real thing on the internet. First, you can not interact with the teacher. Then, in the same way that a play on TV is not worth being seated in front of the actors (in any case, my opinion), immersion is much smaller than the real thing on the internet and can be greatly limited by poor video.

However, I am very excited about this innovation. What are the benefits? First, it is completely out of the stress of running "linear" of a classical education. A passage is not clear? One can pause the time to find an item on the internet in its course, or elsewhere, and / or go back and revisit the difficult passage. A passage is boring ? It is free to fast forward or even skip over the following week.

somewhat controversial issue on which I want to happen is: can we replace some courses "live" by being "virtual" university? The benefits are immediately apparent: staff savings, the ability to reuse the course of the best teachers who can be on the other side of the country and increased comfort for the student who can go at their own pace. The first small problem is that "go at their own pace" can also mean "always procrastinating viewing the course" and spend thirty hours a time to look all over the night before the exam. The second downside is that the courses on the internet may be less useful than the true course. The lack of interaction with the teacher or other students can make learning more difficult. Poor sound quality may hinder understanding of the course, especially if it is not given in the native language of the student.

Difficult to tip the balance clearly on one side or the other. Therefore three researchers have set up a controlled experiment to see if the current "online" are also effective for learning the course "live". In a university where they do not mention the name, they recruited a number of students to participate in this experiment in exchange for a little bonus on the final note. These students were randomly assigned to two groups: one group where they can not access the online courses but only filmed in the classroom, and a group who has been barred access to the classroom but who had access to online courses.

They then compared their test scores and realized that both groups had, on average, results almost similar. The only group that had access to the internet courses did not do worse than released the group that attended classes in the room. However, some subgroups of students, including students with lower initial levels had slightly lower average scores when they only had access to online courses, but it is difficult to draw definitive conclusions .

Similarly, certain elements remain unclear: is it that students in the group who were attending classes in the room had no opportunity to cheat and look at the course on the Internet, eg using a complicit in the other group? The authors believe that it had to happen at least a few times because some students are almost never came to class!

A promising initiative in any case deserves to be more experienced. I doubt that the French are getting into sacks quickly. A slight hope in terms of major schools perhaps?