Explaining the 'Costco effect'

Dollar stores often place staple items at the back of the store

This forces customers to encounter other, less-necessary items on their way there, leading to impulse buys. This video explains other ways that dollar stores make money while selling extremely cheap products, keeping dollar store profit margins relatively high.

CostCo's low-cost hot dogs: The strategy of 'loss leaders'

Wholesale food distributors like Sam's Club, BJ's, and CostCo place a premium on cutting costs for their consumers to cultivate brand loyalty. Enter CostCo's enduring $1.50 hot dog and soda combo. It's a classic example of a so-called "loss leader," a product a company loses money on but which keeps customers coming back for more. Learn the history of wholesalers and how selling over 200 million hot dogs in a year builds CostCo's brand.

Costco's bullion program offers an attractive option for retail investors, experts say

Although Costco's gold bars often sell out, experts caution that the Costco gold rush was more "mob mentality" than sound investment. The bullion program is one way for retail investors to get exposure to the commodities market.

Costco and Amazon have very similar pricing across everyday staples

This article compares the average prices of everyday staples at Amazon and Costco, like toilet paper ($1.12 at Costco, $1.14 on Amazon), to help consumers decide which discount retailer to purchase from.

What Costco does with its unsold baked items

Ever wonder what Costco does with its seemingly endless supply of muffins and other baked goods? Rather than mark down the items or toss them in the trash, the big-box retailer donates the perishable food to Feeding America, a network of food banks and other programs that help feed those in need.

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

Expanding supermarket chains began offering coupons to attract customers in the 1940s

This was partially a customer acquisition strategy devised to lure customers into chains and away from their local independent grocers.

The doorway effect is when people forget their task when entering a new space

The "why did I come in here?" feeling after walking into a room comes from the brain creating event boundaries to organize memories. Mentally revisiting a previous room can help recall tasks and reverse memory loss. (Some readers may experience a paywall.)

The 'dupe' economy is fueled by the youthful thrill of thrift

Historically, you don't want people to know you have a knock-off luxury item. But today's younger generations are embracing the "dupe" economy, an open celebration of luxury knock-off items where consumers are proud to pay less for something roughly equivalent to premium brand offerings.

From 2011 to 2012, a show about 'Extreme Couponing' aired on TLC

The television show gave viewers an inside look at the lives of Americans who treated couponing like an extreme sport. These people would often stockpile hundreds of products they acquired via deals found on coupons in their homes.

Amazon's success is attributable, in large part, to founder Jeff Bezos’ vision

Bezos parlayed a career on Wall Street into founding an online bookstore that would evolve into the largest online retailer in the world. Bezos’ story is characterized by his relentless focus on innovation and on the customer experience at Amazon.

'Deinfluencing' explained

You’ve probably heard of influencers, but have you heard of “de-influencers?” Basically, the de-influencing trend started when creators began making videos about products you shouldn’t buy, rather than sponsored content promoting things you should purchase. Comedian Taylor Tomlinson recently cracked some jokes about the trend, and its companion “under consumption-core.”

The 'overview effect' heightens one's sense of unity and connectedness

Coined by space philosopher Frank White in 1987, the term refers to the paradigm-shifting experience a person undergoes upon viewing Earth from space. Commercial spaceflights aim to bring this perspective to a broader audience, inspiring changes in behavior and worldview among participants.

The surprising economics of sushi

How exactly does a patron of a sushi restaurant in Omaha, Nebraska, get to eat fresh fish caught off the coast of Japan? This episode of the Freakonomics podcast answers this question and explains the impressive feat. Listen to learn about the tricky economics and time-sensitive process behind importing fresh catches to sushi-lovers across America.

The economics of Chick-fil-A

Chick-fil-A has dominated national customer satisfaction surveys while growing conservatively for decades. This video goes into the economics the company deploys to be successful.

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.

A short squeeze happens when short sellers increase stock prices by buying shares back quickly

When short sellers realize their positions may be incorrect—usually triggered by increasing share prices—they often try to quickly buy back their shares in order to minimize their total losses. When this happens on a large scale, that buying activity can drastically increase to represent the seemingly high demand for that stock. The result is called a "short squeeze," which refers to short sellers literally being squeezed out of their positions by rising prices.

Consumer spending accounts for 70% of US GDP, making Black Friday significant

Lizabeth Cohen, a history professor at Harvard and author of the book “A Consumer's Republic: The Politics Of Mass Consumption In Postwar America,” has argued that the US government has presented consumerism as a way out of economic crisis or decline since around World War II.

Meet China's "VICs," or Very Important Customers

High-volume spenders power China's economy. Despite making up just over 10% of consumers, they account for about 40% of consumer spending. WeChat has focused on these spenders to supercharge the expansion of its digital payments and e-commerce services.

Are you hypnotizable?

What causes some people to genuinely fall under the spell of hypnosis and others not? The technique only appears to work easily on about 10% of people, and a variety of both genetic and psychological factors determines one's susceptibility. Researchers suggest effective hypnosis has more to do with a person's self-control than with external influence—and the technique can have tangible benefits.

Credit unions, explained

Proponents of credit unions often point to the fact they’re not-for-profit cooperatives instead of for-profit businesses as a key selling point. This explainer dives into what this looks like in action—instead of pocketing the profits from interest rates, credit unions reinvest that money into the products and services they offer. For customers, this tends to create a more personal and community-oriented experience.

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

Hustle culture is what happens when the belief that working extremely hard will put people on the path to success becomes the norm in a workplace or other group

From pulling all-nighters at the office to never taking a weekend off, hustle culture has been known to lead to employee burnout. The Worklife with Adam Grant podcast explains hustle culture and its effects in depth in this episode.

The origin of chaos theory, colloquially known as the 'butterfly effect'

The theory explains that systems following well-understood physical laws can still produce unpredictable outcomes due to small variations in their initial conditions. Originally identified in weather data, elements of chaos have been observed in stock market fluctuations, cardiac arrhythmias, and the evolution of online social movements.

How self-care led to Ozempic's success

Self-care has become a $1.5T economy that idealizes restraint and willpower, leaving behind those who can't shake off human nature. This article explores how Ozempic and similar weight loss medications pick up where self-care left off.

CES has brought more than $6B in economic impact to Las Vegas since 1978

Since moving to Las Vegas in 1978, CES has attracted nearly 5 million attendees and generated more than $6B in local economic impact—boosting hotels, restaurants, transportation, and the city’s global profile.

Sears used to sell entire DIY houses in its catalog

From 1908 through the 1940s, Sears sold DIY house kits starting at $600. An estimated 100,000 homes were built, but fewer than 5,000 have been identified today.

In its famous catalog, Sears sold $600 DIY house kits from 1908 through the 1940s, resulting in an estimated 100,000 'Sears and Roebuck homes.'

Fast-casual restaurant Chili's is experiencing a resurgence, with its parent company recently reporting a nearly 32% increase in sales, thanks to passionate Gen Z fans on TikTok.

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.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

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

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

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

Legendary architect Frank Lloyd Wright designed the SC Johnson headquarters in Wisconsin, aiming to make a cathedral-like workplace

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

One disco producer saw 'Star Wars' four times on its opening weekend and was so inspired that he recorded the album 'Star Wars and Other Intergalactic Funk,' which produced a chart-topping single.

An investigation suggests a Scottish island became awash in forever chemicals via seafoam and seaspray—raising questions about what that means for the safety of other coastal areas.

Use this calculator to find the dollar value of your mental load, from meal planning to coordinating after-school care for your children.

Fear or disgust related to clusters of holes and cracks, called trypophobia, may stem from evolutionary processes to help us avoid pathogens.

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.

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.

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

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.

According to the physics of black holes, our 4D reality may be a hologram—a projection of information coded on a 2D surface on the edge of the universe.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

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

Crows are believed to have intelligence on par with a seven-year-old child and demonstrate complex behaviors, from problem-solving with tools to recognizing human faces.