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Tuesday, May 17, 2011
The Pricing Politburo Slams Shampoo - S. M. Oliva - Mises Daily
The Pricing Politburo Slams Shampoo - S. M. Oliva - Mises Daily: "Notice she defined the market as being for 'value shampoo and value conditioner,' not shampoo and conditioner generally. In the modern antitrust system, prosecutors strive with all their might to define 'relevant markets' as narrowly as possible. Antitrust is ultimately a game of numbers. As a percentage of the overall shampoo and conditioner market, Suave and V05 are relatively insignificant players. But if you define the market as only including those two brands and maybe one other, suddenly you have a budding 'monopolist' on your hands!"
The Great Train Con | Randal O'Toole | Cato Institute: Commentary
The Great Train Con | Randal O'Toole | Cato Institute: Commentary: "But Michigan's own grant application says the $196.5 million will only increase average speeds from 60 to 64 mph — with the top speed remaining unchanged at 79 mph. That is, travelers will save a mere 12 minutes — not 30."
That costs $34 per minute saved ($2,045 per hour saved) per person per trip. Is each person's time worth that much?
"Last year, Amtrak lost $19 million running three round trips a day between Chicago and Detroit. Amtrak fares start at $31 and the subsidy per ride is almost $40. Increasing the number of trains to 20 per day could cost taxpayers as much as $100 million a year on top of the capital costs.
By comparison — with virtually no subsidies — Megabus carries people between Chicago and Detroit at fares of $15 to $18. While Amtrak takes 6-1/2 hours, Megabus takes just 5-2/3 hours, mainly because it stops only in Ann Arbor, while Amtrak trains stop 8-9 times.
The best way to save people time is to simply end Amtrak subsidies, which unfairly compete with buses, airlines, and other relatively unsubsidized forms of transportation. Megabus or some other bus company would no doubt step in and provide non-stop service from Chicago and Detroit to Lansing, Kalamazoo, Battle Creek, and other Michigan cities. That would serve those 1,315 Amtrak passengers, saving them time and the taxpayers money."
That costs $34 per minute saved ($2,045 per hour saved) per person per trip. Is each person's time worth that much?
"Last year, Amtrak lost $19 million running three round trips a day between Chicago and Detroit. Amtrak fares start at $31 and the subsidy per ride is almost $40. Increasing the number of trains to 20 per day could cost taxpayers as much as $100 million a year on top of the capital costs.
By comparison — with virtually no subsidies — Megabus carries people between Chicago and Detroit at fares of $15 to $18. While Amtrak takes 6-1/2 hours, Megabus takes just 5-2/3 hours, mainly because it stops only in Ann Arbor, while Amtrak trains stop 8-9 times.
The best way to save people time is to simply end Amtrak subsidies, which unfairly compete with buses, airlines, and other relatively unsubsidized forms of transportation. Megabus or some other bus company would no doubt step in and provide non-stop service from Chicago and Detroit to Lansing, Kalamazoo, Battle Creek, and other Michigan cities. That would serve those 1,315 Amtrak passengers, saving them time and the taxpayers money."
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