I have recently learned of two interesting outsourcing activities:
McDonald's is outsourcing its drive thru order taking
&
Some Bloomington (and other towns) restaurants are outsourcing their delivery services.
These companies find it unprofitable to hire more people on direct staff to complete these tasks. However at a lower cost created by outsourcing, these services can be provided giving the customers better service and more selection.
Wednesday, July 8, 2009
Monday, June 29, 2009
Paying the Price to Poo
On the Freakonomics blog, the question was posed 'if you were made to pay for the bathroom on the plane would you still fly'? Interestingly enough, in the Philippines you had to pay to use the bathroom. Even more mind tingling is that to use the bathroom lightly (number one, if you will..) was normally 3 pesos, while doing your business (number two..) would cost you 5 pesos. This is how most public bathrooms worked, especially ones on the bus route. Sometimes there was someone there who would flush the toilet for you (with a bucket of water). I always wondered what you were paying for: the water, the person, the septic tank space, or the physical upkeep. I honestly would have rather flushed my own toilet, but maybe that would be like using the 'you scan' scanners at the grocery store and denying someone of a job.
My answer is while I would like the price of the toilet to be included in my ticket price as it probably is now, I would not let that sway my decision on whether to fly. As Hamermesh theorizes, I would change my behavior to try not to use the bathroom during flight, but when nature calls....
My answer is while I would like the price of the toilet to be included in my ticket price as it probably is now, I would not let that sway my decision on whether to fly. As Hamermesh theorizes, I would change my behavior to try not to use the bathroom during flight, but when nature calls....
Thursday, June 25, 2009
Some Tools for Work, Some Tools for Play
I found this tool today while at work. It ranks counties on the ease of doing business based on regulations and enforcement within different business aspects. You can click the tabs at the top and organize the countries based on different variables to find out who has a competitive advantage based on these definitions. Interestingly, the United States tied for first in ease of employing workers. Take a look its pretty interesting.
Thursday, June 18, 2009
Creating Value in the Black Market
The quote from this article that I found from Cafe Hayek's link that is discussing Venezuela's current financial issue:
reminded me of a quote from the book 'Stay Alive My Son' by Pin Yathay. The story was a super interesting read about the author, Thay, who lives through the overthrow of the Cambodian government by the communistic Khmer Rouge. In part of the book, a black market is created for goods since the ration of supplies is way below sustaining levels for the masses, but due to some level of corruption there are extras for the ruling class( pg 88). A market is created to exchange the ruling class' food for the mass' physical items they have carried with them that are no longer purchasable in a general market. Thay decides to create a market for dollars since at the time they have no worth (pg 104-105).
Here Thay has the right idea, he has to create a market, but the issue does not lie in the fact that dollars are without a fixed value, it is that they have no value at all. When talking about trading of gold and dollars, he is referring to a different time period where dollars had value, whereas in his current situation they have none. You could have a billion barrels of oil in your possession but if all consumers became totally reliant on green energy and found other less expensive materials to create all of the physical items that are made from oil, your barrels would be worth nothing (or at maximum very little). Additionally, the fact that many people have dollars shows that there is a large supply, but no demand. What he needs to do and does is create a demand for the dollar.
Here Thay has created value for the dollar. Since one person decided that the dollar currency is valuable to them and they are willing to pay for it, a market is created. The reason for why he wants the dollar is also important because it expresses to others that the dollar holds value for future goods, above and beyond what it is worth now.
As people started trading, a scarcity for dollars was created. More people wanted dollars to hold onto for future spending than were available at 10 cans of rice. Therefore they needed to give up more of their current consumption to entice people to trade their dollars. In times like these, it is especially important that transfers occur. Thay could not eat his one hundred dollar bill and the person in charge has more food than necessary. If that person in charge is willing to forgo ten can of his rice for the hundred dollars by all means trade, and if someone is willing to give up fifteen for one hundred dollars even better. Trade and keep Thay alive!
When they can't get government dollars, many companies turn to dollar-denominated government bonds or to the thriving black market, where the dollar sells for about three times the official exchange rate.
reminded me of a quote from the book 'Stay Alive My Son' by Pin Yathay. The story was a super interesting read about the author, Thay, who lives through the overthrow of the Cambodian government by the communistic Khmer Rouge. In part of the book, a black market is created for goods since the ration of supplies is way below sustaining levels for the masses, but due to some level of corruption there are extras for the ruling class( pg 88). A market is created to exchange the ruling class' food for the mass' physical items they have carried with them that are no longer purchasable in a general market. Thay decides to create a market for dollars since at the time they have no worth (pg 104-105).
Logically I knew the dollars should be worth something for I knew that many people had them. The problem was that there was not enough of them in circulation for them to acquire a fixed value. It was better to spend gold. But gold varied in value according to aesthetic appeal of the object in question. Necklaces for examples fetched one third again as much as bracelets. For anyone who worked things out, as I did, it was clear the system was full of holes. For example, I could theoretically buy a tael of gold for 200 dollars and with that tael of gold buy 40 cans of rice. Yet with that same 200 dollars, if I traded it directly, I could only buy 20 cans of rice. What I had to do therefore, was to create a stable market for dollars.
Here Thay has the right idea, he has to create a market, but the issue does not lie in the fact that dollars are without a fixed value, it is that they have no value at all. When talking about trading of gold and dollars, he is referring to a different time period where dollars had value, whereas in his current situation they have none. You could have a billion barrels of oil in your possession but if all consumers became totally reliant on green energy and found other less expensive materials to create all of the physical items that are made from oil, your barrels would be worth nothing (or at maximum very little). Additionally, the fact that many people have dollars shows that there is a large supply, but no demand. What he needs to do and does is create a demand for the dollar.
First of all I build up stock of about 50 cans worth of rice by exchanging clothing and jewelry. This gave me a margin of safety to put my plan into operation.
Then I went to see a broker, a Chinese who was branded as a New Person along with the rest of us and who had a reputation for making deals extremely quickly.
"My friend do you have dollars?" I asked. "Someone asked me for some."
My question perplexed him. "Why dollars?"
"Don't ask me its for a friend. But if you can find some for me, I will give you rice in exchange."
"But why? Can't you explain?"
"I suppose because dollars will be important if we return to Phnom Phen," I said. "The embassy personnel there uses dollars. It is a strong currency. It is what you need to travel abroad. Overseas only dollars count. When the day comes the dollar will have a high value relative to our new currency. And its stable not like gold. One hundred dollars is always one hundred dollars. Anyways if you can find any, I will exchange them with you, for my friend."
The Chinaman knowing there were plenty of dollars around and having good contacts soon brought me 200 dollars for which I duly gave him 20 cans of rice.
The rumor of our exchange spread quickly through our camp and two or three of the neighboring villages. Suddenly people began to think their dollars might be of immediate rather than long term value.
Here Thay has created value for the dollar. Since one person decided that the dollar currency is valuable to them and they are willing to pay for it, a market is created. The reason for why he wants the dollar is also important because it expresses to others that the dollar holds value for future goods, above and beyond what it is worth now.
Naturally my broker was the first to cash in on this new market. After a few days he reappeared at my house. He seemed unhappy. "You cheated me, Thay," he said. The others give me 15 cans of rice for one hundred dollars, but you, you only gave me ten."
So already, dollars had risen 50 percent in value. I calmed him by giving him 15 cans of rice for another one hundred dollars. Everything seemed to be working out perfectly . My stock of rice had gone down, but in this tiny, enclosed, artificial economy my dollars had acquired value.
I was soon able to put this development to good use. Over the next few weeks working with the same broker I spend a thousand of my dollars buying one hundred and fifty cans worth of rice. Those purchases which not only enabled us to live reasonably healthy also had other repercussions far beyond anything I could have planned.
As people started trading, a scarcity for dollars was created. More people wanted dollars to hold onto for future spending than were available at 10 cans of rice. Therefore they needed to give up more of their current consumption to entice people to trade their dollars. In times like these, it is especially important that transfers occur. Thay could not eat his one hundred dollar bill and the person in charge has more food than necessary. If that person in charge is willing to forgo ten can of his rice for the hundred dollars by all means trade, and if someone is willing to give up fifteen for one hundred dollars even better. Trade and keep Thay alive!
Saturday, June 13, 2009
Matching by Preferences
I couldn't explain it any better than them:
I thought, 'Whoah.... now if you could only do this for dating!' And then I realized this is probably exactly what online dating companies do.
It seems everyone wants to live in a city with a low crime rate, great schools, a warm sunny climate, affordable housing, and plentiful jobs. But there are always tradeoffs in the real world, and that's where this tool is invaluable.
With our feature, you define your ideal place to live by indicating the importance to you of each category. Our computers then run through thousands of calculations and display a ranking of the cities which best meet your criteria.
I thought, 'Whoah.... now if you could only do this for dating!' And then I realized this is probably exactly what online dating companies do.
Pack Her Up and Move Her Out
In 2007, The New York Times published a report stating that;
Sperling's BestPlaces, a research firm, believed that the Times' number was a little high and decided to complete their own study. They restricted their data to single, widowed, and divorced women age 25-64, due to the University of Texas survey finding that the average age of women at their first marriage is 26.
Sperling's BestPlaces went even further and outlined locations with high percentages of singles. They then completed another study highlighting which cities are the best for dating.
From their time and effort, I learned that I need to first move west because, 'San Francisco seems to attract single people like a good pickup line, if there is such a thing.'
Then I need to relocate south with this new boy toy to Austin Tx, since it 'tops the list of best cities to play the dating game.'
Wait a second, does Sperling's BestPlaces have a spin off moving company?
In 2005, 51 percent of women said they were living without a spouse, up from 35 percent in 1950 and 49 percent in 2000.
Sperling's BestPlaces, a research firm, believed that the Times' number was a little high and decided to complete their own study. They restricted their data to single, widowed, and divorced women age 25-64, due to the University of Texas survey finding that the average age of women at their first marriage is 26.
They found that in the 379 metro areas nationwide, 34% of women 25-64 are single. Despite all the attention to this new milestone for single women, the difference between the number of single men and women is not as great as one might think. Nationally, 32% of men are single.
Sperling's BestPlaces went even further and outlined locations with high percentages of singles. They then completed another study highlighting which cities are the best for dating.
From their time and effort, I learned that I need to first move west because, 'San Francisco seems to attract single people like a good pickup line, if there is such a thing.'
Then I need to relocate south with this new boy toy to Austin Tx, since it 'tops the list of best cities to play the dating game.'
Wait a second, does Sperling's BestPlaces have a spin off moving company?
Friday, June 12, 2009
Spam: It Is Not As Bad As You Think
While doing some research today, I came across one of those annoying spam word puzzles and noticed it was a bit different. In the bottom corner, it displayed a motto "Stop Spam, Read Books." I thought, "Hmmmm... What do they mean? Stop wasting time reading spam emails and use it wisely by reading books?" I decided to take a quick detour to find out what was going on. Here is the story. (A quick definition that may be useful: reCAPTCHA= the spam word puzzle that you have to answer to prove you are not a computerbot sending links, emails etc)
Basically sometimes when you scan books into a digital system, it does not come out readable. So this company uses our brain power to solve the question of,"Hmmm..... What does that say?" But, you may be asking, "How do they know that we are right?" Well, they use group wisdom to answer that riddle.
About 200 million CAPTCHAs are solved by humans around the world every day. In each case, roughly ten seconds of human time are being spent. Individually, that's not a lot of time, but in aggregate these little puzzles consume more than 150,000 hours of work each day. What if we could make positive use of this human effort? reCAPTCHA does exactly that by channeling the effort spent solving CAPTCHAs online into "reading" books.
Basically sometimes when you scan books into a digital system, it does not come out readable. So this company uses our brain power to solve the question of,"Hmmm..... What does that say?" But, you may be asking, "How do they know that we are right?" Well, they use group wisdom to answer that riddle.
Each new word that cannot be read correctly by OCR is given to a user in conjunction with another word for which the answer is already known. The user is then asked to read both words. If they solve the one for which the answer is known, the system assumes their answer is correct for the new one. The system then gives the new image to a number of other people to determine, with higher confidence, whether the original answer was correct.From now on, I will be a little less annoyed when I have to answer the spam word questions.
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