If you are a student in Econometrics or Economics, the concept of marginal utility should ring a bell. From your first-year course in microeconomics to the more advanced courses later in your bachelor, the concept plays an important role in understanding microeconomics. The theory is founded on the premise that choices made by consumers are based on the preferences of the consumers. A rational consumer attaches more value to important things and gives up irrelevant items. The subjective theory of value was introduced by Carl Menger (1840–1921), one of the founders of the Austrian School […]
In March 2014, an American band named Vulfpeck released the album Sleepify. With the money raised by this album they did a Sleepify tour across America with shows that people could attend free of charge. Nothing too special so far, what’s the catch? Well, Sleepify lived up to its name: there isn’t a single sound on the entire album. Golden silence Sleepify consists of 10 songs each lasting just over 30 seconds, all of them completely silent. At the release, Vulfpeck asked its fans to play the album on repeat while they were sleeping, thereby […]
You might have heard it in the news lately, the number of billionaires has never been as high as right now. At the beginning of April, the Forbes’ 35th Annual World’s Billionaires List was announced. The number of people owning more than $1,000,000,000 has increased to an unprecedented 2,755. Together they are worth $13.1 trillion, which is way more than the $8 trillion all billionaires combined were worth one year ago. This is partly due to the fact that there is a record high of 493 new billionaires and to the fact that 86% of […]
With trading cards becoming more popular the last year, it seems not only collectors have taken an interest. Some investors and companies are now starting to invest in these trading cards.
It is the year 2007. The school bell has rung and you’ve jumped on your bike and are sprinting home as fast as possible. At home you fire up the Windows Vista powered desktop computer, you launch the game client, and “Jungle Island” starts to play. It is time to fish an inventory full of lobsters. Afterward, the long walk to Varrock west bank starts. Luckily, you have just finished your typing courses, so you can start spamming your offer as fast as possible: “Selling lobsters 200 ea”. And now you just have to wait […]
It started with marching bands, Micheal Jackson made it big, Diana Ross used a helicopter and Justin Timberlake caused women to be ignored for 7 years during the hiring process. We are of course talking about the Super Bowl Half-Time Show! The 15-minute extravaganza has been part of the sports event since the start and has helped it to become one of the largest broadcasted events each year. However, it took 26 Super Bowls to figure out that hiring A-list talent was the way to go. Michael Jackson, U2, Lady Gaga, Shakira & Jennifer Lopez, […]
Last week, many eyes were pointed at wall street. I am, however, not yet talking about the GameStop short squeeze that took place around the 27th of January. The establishment of new online stock trading platforms has served as an agora for the public to learn about stock trading and to sell and buy them with a tap on their phone. While sophisticated Wall Street brokers did not bother handling accounts with two hundred dollars, these platforms gladly took in any interested individual. The public took its share in online stock trading, while still being looked […]
You’ve probably heard of Reddit before. It is a social media platform consisting of a network of communities, called subreddits. Most people tend to use Reddit to post messages and share content with each other. Last week however, members of the subreddit r/wallstreetbets all helped raise the stock of Gamestop, a struggling American videogame retailer, from $20 to a stunning $480. This resulted in huge profits and losses, and overall a very volatile stock market. So, how did a group of redditors manage to dominate the stock exchange?
In his dystopian novel ‘1984’, George Orwell introduces a society which is controlled by the government. All the news is fabricated and everything is monitored by the so-called “Thought Police”. The book discusses the consequences of an authoritarian government and how the manipulation of facts influences politics. For instance, the main job of the protagonist, Winston Smith, is to alter the news shown to society when it did not coincide with the way things really happened. Luckily, in our era things are way less extreme (at least in the Netherlands), but similarities can be drawn […]
Most of you have probably heard about it in the news lately: the Bitcoin price is reaching new highs, which have never been seen before. This is mainly due to the fact that several financial firms have announced that they will invest their money into bitcoin. Other firms have predicted that the bitcoin price will increase, some saying even that it will reach $146K before the end of 2021. This is quite interesting considering the fact that bitcoin is a relatively new asset, and most people think this is pure speculation. That is not so […]
It is almost that time of the year again: Black Friday. The day were most of us spend a lot of money (almost 90% more than usual) on presents for ourselves, friends, and relatives. A day which is well-known for its raging hordes of Black Friday shoppers. We have all seen the extreme videos were usually well-behaved individuals act like animals. The men and woman who run down the escalators at full speed and try to grab whatever they can on their way to the checkout desk. Interestingly, due to COVID-19, this year’s Black Friday […]
Imagine you get the opportunity to flip a coin for only 1 dollar : if it turns up heads, you win 50% and if it turns up tails you lose 40% of your initial bet. Of course we’re all familiar with calculating expected payoffs: since this bet has an expected payoff of 0.5*1.5 + 0.5*0.6=1.05, you should take it. Right? Well, it might be a little less obvious. Suppose you flip the coin another time. Your wealth will, depending on the flips, either be 2.25 (two heads), 0.9 (one heads, one tails), or 0.36 […]