Network effects are the economic term for a good or service's popularity

Market concentration and high markups don't always signal a monopoly

When regulators and economists evaluate whether a company constitutes an illegal monopoly, they often consider its overall market share or its relatively high price markups. This piece argues that the Olley-Pakes decomposition is a better measure, identifying whether customers within a market are switching to more productive companies.

A 'bilateral monopoly' occurs when there's one supplier and one buyer in a market

Bilateral monopolies are often used to conceptualize labor markets in small towns. Using this concept, large employers have a monopoly over the labor market, while workers have a monopsony as the only available laborers.

Utility companies are often considered 'natural' monopolies

Natural monopolies occur in industries where the upfront costs of entering the market are high, making competition unrealistic. Investor-owned power companies, like Duke Energy, often have natural monopolies, as building alternative power grids and transmission lines is too expensive and impractical for competitors.

What something costs is reflective of a balance in the market determined by the amount of demand relative to the supply of goods and services

Because economies are complex systems, a wide variety of issues influence this balance—including some things generally considered to be positive, like rising wages.

'Genericide:' Learn how too much brand awareness can hurt a company's trademark

When a brand becomes so popular that consumers regularly call the product by the brand name like a noun or verb, that trademark becomes generic because consumers no longer associate a specific brand with a certain product. A generic product can hurt a company's right to trademark or even cause companies to lose it. (Some users may experience a paywall.)

John Maynard Keynes was one of the most influential economists of the 20th century

Keynes influenced economic thought by arguing that governments should spend to stabilize economies during downturns. His ideas shaped the postwar international order and remain central to modern economic policy debates.

Explaining the 'Costco effect'

The "Costco effect" is a term used to describe how the warehouse chain has perfected the art of the impulse purchase. The strategic layout of the store and product placement encourage shoppers to explore and make impulse purchases after initially getting reeled in by low prices on high-quality goods. Read first-hand accounts from shoppers explaining the spell-like effect in this story.

'Good deflation' happens when prices naturally track with supply, meaning prices change gradually

This tends to make products and services more affordable and normalizes the standard of living. Bad deflation usually happens when there are sudden changes to either supply or demand. Near-zero [interest rates helped create the real estate bubble that sparked the Great Recession when it crashed](https://www.youtube.com/watch?v=LMo9mD8j7IA&t=91s) Because deflation distorts the value of money, deflation is particularly harmful for borrowers. Low interest rates made it easy for businesses and everyday people to take on enormous debt, which exacerbated the effects of the recession.

A Tiger economy typically describes a booming Southeast Asian country

The term “tiger economy” has been used over the last several decades to describe a developing country experiencing rapid economic growth, often due to developing export-oriented industries and/or financial markets. The term was originally applied to Southeast Asian economies, including South Korea’s, and has since been used to describe Ireland, the Baltics, and Dubai.

Fame can trigger addictive, drug-like highs in the brain

Differences in the type of fame, such as movie stardom, sports, and internet virality, can produce varying degrees of dependence on individuals based on their age and background. Some individuals—particularly children—can develop drug-seeking behavior as they pursue continuous dopamine spikes if they lack an existing sense of fulfillment from elsewhere.

What is the creator economy?

The creator economy is a system powered by people creating online content for monetizable audiences. These “creators” and “influencers” make money off their digital audiences through brand deals or revenue shares with social media platforms.

The economics of romance novels

Romance is the publishing industry's most popular genre, with over 44 million units sold in 2025 alone. This episode of "The Economics of Everyday Things" podcast explores how the once-maligned form became the most reliable kind of book in the industry.

The clearest sign of a recession is a steady increase of job losses and high unemployment

The National Bureau of Economic Research (NBER) looks at six key economic indicators, including industrial production, to determine when the economy is experiencing a recession.

Netflix, explained

From offering an internet-based, mail-order Blockbuster alternative to its eventual status as a market leader in streaming entertainment, Netflix has led nearly every major paradigm shift in the television and movie business since its inception.

The original 'four horsemen' of tech were Intel, Dell, Microsoft, and Cisco

These companies became known as the "four horsemen of tech" for the influence the companies had both on other businesses and investors in the late 1990s and early 2000s. The expansion of internet infrastructure throughout the 1990s and the dot-com bubble lifted these companies to incredible heights.

National parks boost local economies, but they can also harm local land

Increased tourism and job creation are big wins for the small towns outside national parks, but the influx of visitors can also have negative effects, including wildlife destruction and overdevelopment.

An analysis of the logistic map, which shows how chaos can emerge from simple equations

When modeling systems such as the predator-prey cycle of an organism's population in an ecosystem, the logistic map function shows the population normally settles into an equilibrium value. However, at high reproduction and starvation rates, multiple such values arise, making it difficult to accurately model long-term population growth in some environments.

How the National Science Foundation supports the US economy

The NSF has filled funding gaps in the research and development of products developed in the private sector, particularly when the research requires more than three years to complete. These investments, including in startups such as Qualcomm and Symantec, have supported job creation, generated economic returns, and helped build the technologies many industries rely upon, such as the internet.

The dominant popularity of McDonald's french fries

McDonald's french fries are, by far, the most popular french fries available at fast food restaurants around the world. Since their beginnings, their consistent and unique flavor, crispiness, and shape formed a new staple side at restaurants. Despite undergoing drastic shifts in how they are made due to health and business factors, the fry has remained dominant in the fast food culinary world. Find out more about its history in this video.

The commerce clause gives the federal government authority to regulate interstate economic activity

This short constitutional provision has allowed Congress to regulate everything from wheat production to racial segregation, greatly expanding federal power by linking national authority to interstate economic activity.

The R0 value is how epidemiologists quantify disease contagiousness

The basic reproduction number indicates the average number of people a person with a disease will infect. Measles is the most contagious disease, with an R0 of 12-18, though vaccines have significantly reduced the number of susceptible individuals.

The National Retail Federation coined the term ‘Cyber Monday’ in 2005

As online-only retailers like Amazon expanded in the early 2000s, they sought ways to capitalize on Black Friday’s uptick in sales—but they didn’t actually have physical retail stores. Enter: Cyber Monday, a day that now competes with Black Friday for the highest e-commerce sales day of the year.

The unavailability bias says what we don't see must not exist

Before social media, information was more scarce, and it was the norm not to know much about some controversy or episode. This led to a common prejudice: the availability bias, that what is at hand must be true (in business, the courts, finance, and many fields). With information overload today, the inverse occurs: when something is missing (like the photo of a suspect), it makes us think the suspect does not exist.

Compounding, explained

During conversations about personal finance, the term "compounding" gets thrown around—but not everyone understands how compound interest and compound returns work. Broadly speaking, compounding is what happens when you not only earn returns or interest on your original investment, but also on the accumulated returns or interest you receive over time. This article explains how both of these processes function, and what compounding could mean for your wallet.

Visualizing the economic impacts of 5G

5G is set to revamp industries around the world, but the benefits may not be equally distributed. This nifty graphic illustrates what the global landscape may look like in 2035.

The Nasdaq's 'Magnificent 7' companies are responsible for roughly 40% of the Nasdaq 100 index's gains, while the remaining 93 companies account for the other 60%.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

Some researchers have labeled nomophobia, the fear of being without your phone, as 'the phobia of the 21st century.'

Browse a detailed visual analysis of over 200,000 similes—comparisons that often use 'like' or 'as'—from popular fiction to see how frequently writers the same idiomatic expressions.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

An initial public offering or 'IPO' is the process of a private company becoming public by putting shares of the company on the stock market for purchase.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

Fireworks make a loud booming sound after exploding due to air expanding faster than the speed of sound.

The power and influence of the American presidency have expanded significantly over time—far beyond what the founders envisioned.

Learn how monoclonal antibodies, which mimic the body's antibodies, can fight diseases like Ebola.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

El Niño, Spanish for 'the boy,' was named after Jesus Christ because the phenomenon resembled the weather changes observed around Christmastime.

The name 'Silicon Valley' arose from the founding of Shockley Semiconductor Laboratory in Fairchild Semiconductor in 1956-57, founded near Stanford University in Palo Alto

A century of Billboard issues documenting the evolution of popular music.

A Yale student wrote a profound essay about the consulting industry's influence on elite college students that was published in a book of her writing after she died in a post-graduation car accident.

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

SpongeBob exemplifies Aristotle's philosophy for living well because he understands that happiness doesn't come from external factors like money, recognition, or power.

The word 'jazz' evolved from 'jasm,' 19th-century American slang for 'energy'

Pure water does not conduct electricity because this flow of energy requires the movement of charged particles, and water is a neutral molecule.

When a Paris department store hesitated to sell Estée Lauder's perfume, she 'accidentally' broke a bottle, causing the smell to spread throughout the store and shoppers to start asking to buy the scent.

Louisiana's 'Cancer Alley' is infamous for having some of the highest industrial pollution, toxic air emissions, and cancer risks in the US.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight