City size, variety, and consumer surplus

In the 1990s, in the early years of the information technology revolution, economist Robert Solow famously commented that “you can see the computer age everywhere but in the productivity statistics.” Two decades on, that still rings true. Social life has been profoundly transformed by new technology: It has altered the way we communicate with friends and family, how we entertain ourselves, and even how we date.…
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How congested is Auckland, really?

A lot of people think that Auckland’s got bad traffic congestion. The annual TomTom Traffic Index reinforces this perception – it regularly describes Auckland as one of the most congested cities in the region. (We’ve previously highlighted the methodological flaws with TomTom’s numbers – don’t take them at face value!) However, I don’t think this perception matches up with reality.…
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Choice matters: an economic parable

Lately I’ve been thinking about the role of choice in transport and housing. People often underestimate the power of choice in these particular markets. But it’s important to have options – even if someone wants to drive 90% of the time, having the option to take the bus or cycle instead the remaining 10% of the time can make them better off.…
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