How Tesla is Upending Conventional Economic Theory

Recently, it came to light that Tesla would begin building destination Electric Car Chargers that support not only its cars but any electric vehicle currently on the market. At first, this seems counterintuitive: why would Tesla invest in something anyone can use? According to traditional economics, there is a reason Ford doesn’t build free parking lots everywhere, there is a reason Samsung doesn’t provide free cases for any phone, and there is a reason most companies don’t invest in common goods. But with the announcement that Tesla is seemingly throwing that logic out the window, we need to revisit the … Continue reading How Tesla is Upending Conventional Economic Theory

The Positive Apple Externality

I recently witnessed the effect an Apple store has on neighborhoods. After a store opened its doors in a slightly shabbier part of Brooklyn, the location appeared to transform into a revitalized clean street full of high-end cafes, shops, and a plethora of strolling people. Thinking back to the externalities unit in my economics class, I wondered whether the Apple store had an externality of its own because it seemed to me like the two events – an Apple store opening, and the transformation of a location – were interconnected. Vaccines, Healthcare and Education are some of the textbook positive … Continue reading The Positive Apple Externality

How Paytm could Generate Revenue

With Paytm now at the forefront of the digital payments sector in India capturing millions of users during demonetization, the logical next question arises: how will the app begin to make money? There lies the obvious solution that Paytm can charge a small transaction fee within the app, but something truly revolutionary may be sitting right before our eyes. Traditional banks make money by giving loans and receiving interest; Paytm could follow their lead and build the next generation of payments through an app. Picture this, you need some money to buy food at the local grocery store, but you … Continue reading How Paytm could Generate Revenue

Cannibalization

Recently, DJI launched the new Mavic Pro. It sets the new standard for drones in the segment, and it’s the perfect example of why the company’s doing well. Steve Jobs famously said: “If You Don’t Cannibalize Yourself, Someone Else Will”, and in the past few years under the leadership of Tim Cook, Apple seems to have forgotten this and held itself back. Companies have reacted and the competitors have just gotten better and better. The iPad and Mac dilemma is a perfect example of this. In order to keep both segments alive, Apple seems to have omitted features from both … Continue reading Cannibalization