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Thursday 10 December 2015

Unit 3: Rail Franchise - Contestability & government regulation

I recently read this article from my local towns newspaper. It talk about how the new rail company that will operate the second largest franchise in the UK, the promises it makes and how the consumer will be better off as a result.

Excellent context for any question on government regulation, natural monopolies and contestability.

Sunday 6 December 2015

Unit 1: Market for Ivory - Black markets & market failure

This week on the Beyond the Bike adventure, Stuart and Claire have been investigating the impact of illegal ivory poaching near Lusaka. To support the Beyond the Bike investigation, we have put together a number of resources to link with the Economics curriculum; the resources explore how the global price of ivory is determined, the black market associated with ivory, the negative externalities associated with the ivory market, and possible policy solutions to this example of market failure.
Next, take a look at this excellent 2012 Panorama documentary exploring the nature of the ivory market in more detail:



Finally, go to my Beyond the Bike blog post for a fully-planned group work lesson exploring the impact of the ivory trade on different stakeholders and possible policy solutions from freeing the market through to greater intervention, along with some behavioural economics suggestions.

Unit 3: Rail prices to rise by 1.1% above inflation

Regulated fares, which include season tickets, are capped at no more than July's RPI inflation rate of 1%. Unregulated fares, such as off-peak leisure tickets, can go up by as much as the train companies like.   Click here to access the article explaining the rail companies decision. 

Unit 1: Market Failure & Efficiency - An Introduction

Unit 1: Reducing Market Failure - The 5p plastic bag charge

I saw an interesting piece from the BBC yesterday about the reduction in the use of plastic bags in Tesco, since they introduced the 5p charge. Click here to access.

Points to consider:

What does this suggest about the PeD for plastic bags?

Is it the price that is stopping people buying the bags, or is it something else?

Friday 4 December 2015

Unit 3: Contestable Markets - Tyrrell finally decides to advertise

The premium crisp / potato chip market is increasingly crowded these days. I don't mean the industrial offering stacked high from the likes of Pringles but the slightly more esoteric product brands such as Burts, Darling Spuds, Pipers and Salty Dog.
Tyrrells is right up there having achieved rapid organic growth since the business was founded less than 15 years ago.
Management Today reports that they are launching their first conventional bill-board advertising campaign in a bid to maintain sales against a fierce competitive head-wind. It seems that word of mouth and a lively social media presence can carry a brand only so far.