Why Banning Menthol Cigarettes Locally Doesn’t Work
People kept smoking after a statewide restriction, and tax revenue fell dramatically.
Why Banning Menthol Cigarettes Locally Doesn’t WorkHow consumers can use price as an indicator of quality
Judging the quality of an unopened bottle of wine can be hard, so many people simply assume that expensive wines are superior to inexpensive ones. But this assumption works better for some products than others, according to Chicago Booth’s Ann L. McGill and her co-researchers.
A product’s quality can vary more at one end of a price spectrum than at the other—and so can the mistakes consumers make when using price as a stand-in for quality. This variation is known as heteroscedasticity. For example, cheap soap is usually low quality, but the quality of higher-priced soap is less predictable. The opposite is true for wine: expensive wine is usually high quality, and the quality varies more when the price falls. The takeaway: a $500 bottle is likely good, but don’t overlook bargains in the discount bin.
People kept smoking after a statewide restriction, and tax revenue fell dramatically.
Why Banning Menthol Cigarettes Locally Doesn’t WorkEconomic distress in one area affects what companies sell elsewhere.
Producers May Contribute to the Economic Contagion from COVID-19Research suggests the nutrition gap may be more a problem of demand than supply.
The Hole in the Food-Desert HypothesisYour Privacy
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