Discounts For Good Driving

December 2, 2012 in Daily Bulletin, Signature

The next time you try to get car insurance you may be offered a deal: a discount on premiums in exchange for your privacy.

  • Typically car insurers use crude metrics such as your age, race, or even credit report to determine how risky your driving behaviour is and use that information to determine your monthly premiums.
  • Now however insurers are looking to dispense with the metrics and measure your driving capabilities directly. If you agree to install a sensor in your car that monitors your driving performance, insurers are willing to give you steep discounts on your monthly premiums if you’re found to be a good driver.
  • One such program from Progressive only asks you to install the device for six months, and then gives you a permanent discount based on the information it collected – although the company reserves the right to re-evaluate you if, for example, you get into an accident.
  • By only monitoring your driving performance for a short period of time, the company is hoping to make you feel more comfortable with the idea of your driving being monitored – especially since the rewards of this temporary arrangement could be lucrative.
  • The system is also being used to drive sales. Customers who currently don’t get car insurance from Progressive are offered the sensor for free to see how much their premiums would be if they were to switch providers.

Read more about the data that the insurance companies might choose to collect, why the sensors don’t come with GPS logging, and the time of day when you’re most likely to get into an accident over here.

Source: The New York Times

Via: The Atlantic

What Facial Recognition Means For Us

December 2, 2012 in Daily Bulletin

Microsoft’s Kinect system does a pretty good job of recognizing your face and automatically signing you into your Xbox account. That same technology though is being used by other companies in fascinating and potentially frightening ways. Monte Richard wrote:

  • Japanese railway staff are required to have their smile checked by a computer every morning to see if it is genuine.
  • Saab, a car manufacturer, has started installing systems that monitor your face to see if you’re paying full attention to the road. If it seems like you’re drifting off to sleep then it’ll ring an alarm to jolt you.
  • However this same technology could be used in the workplace to calculate exactly how much attention you were paying to the work you had to do.
  • Security services are developing lie detectors that monitor your face for subtle, unconscious muscle movements that indicate deception.
  • One company is trying to set up cameras at the entrance of night clubs which identify the gender, race, and other physical characteristics of the people entering and exiting. People could then find the bars with their preferred demographic mix of partiers.

Read more about how dictators could use this technology, mood-sensitive advertizing, and what legal protections you have to prevent yourself from being monitored (hint: none) over here.

Source: Cracked

The Year Of Music In Review

December 1, 2012 in Daily Bulletin

Shazam is a music tagging service that listens to music through an app on your phone or tablet and then identifies it for you. The company behind it just released their stats for the year:

  • Gotye’s Somebody That I Used To Know was tagged 15 million times – almost twice as much as second placed We Are Young.
  • Rihanna with 15.4 million tags narrowly beat out Gotye to be the most tagged artist this year.
  • Alex Clare’s Too Close was a relative unknown until Microsoft picked it up for its Internet Explorer commercials. After that Shazam fueled its rise to the top of the charts.
  • Based on their data up and coming artists who are poised to dominate the charts in 2013 include:

Find the entire list of the most tagged songs, and see region level data over here.

Source: Business Wire

Via: Fast Company

The Myth of American Meritocracy

December 1, 2012 in Daily Bulletin, Signature

An extraordinarily long and exceedingly controversial essay about the unfairness of elite college admission practices – and the subsequent effect on the United States – has been doing the rounds of the economics blog circuit. Centives’ summary of Ron Unz’s fascinating, if disturbingly presented, argument:

  • Modern college admissions systems came about as a result of overt racism. In the 1920s admission was based on academic merit and Jews were taking all of the top spots. Universities moved to prevent this by implementing an opaque system where the candidate was evaluated based upon an undefined set of criteria.
  • It worked. College administrators were able to suppress Jewish enrollment through a stealth cap that the media couldn’t attack them for.
  • Since then academic institutions have a history of altering how they evaluate students to either make it easier or more difficult for certain groups to get admission.
  • In the present day it’s Asian Americans who are discriminated against. Even though Asian-American students are by far the smartest around, since the mid-1990s there has been a stealth cap on their enrollment numbers. Universities have done this by once again talking up their ‘holistic analysis’ of candidates, rather than criteria based upon objective, transparent standards.
  • Instead the tables have turned and now Jews are vastly over-represented in colleges, even though their academic capabilities and achievements have crashed – a pattern common with late-generation immigrants.
  • This is in part why Asian students are forced to be so competitive. They can’t get into elite universities by merely emulating the feats of their Jewish peers. They must compete at a higher level and this requires them to be hyper-competitive.
    • A fascinating side effect of this is that whites flee neighbourhoods with high numbers of Asian students, because they don’t want to compete with over-competitive Asian students. But the students are over-competitive because there’s no other way for them to make it into the country’s top schools.
  • So how did Jews escape the discrimination? They were able to exert enormous pressure, and reverse the injustice, through Jewish ownership of America’s major media outlets including news channels, television networks and movie studios. That pressure continues to this day. Asian-Americans have no such power and so things aren’t likely to improve for them.
  • The problem is exacerbated by unqualified admissions officers making their decisions under the fear of being labelled anti-Semitic if the proportion of Jewish enrollment falls.

The full essay could easily have been its own book. It covers a ridiculous amount of ground, isn’t as racially antagonistic as it appears, and is well worth a read for the implications that this has for America’s elite colleges…and thus its government and business leadership. Get yourself a mug of hot chocolate and read it over here.

Source: The American Conservative

Via: Marginal Revolution

How To Profit From The End Of The World

November 30, 2012 in Daily Bulletin, Signature

The planet is warming. There are very few people who would dispute this. And as with anything in economics, any time there is certainty about an event, there is a profit to be made. Here’s how an aspiring millionaire can make money from the end of the world:

  • As companies adapt to the effects of rising sea levels and changing weather patterns, climate change consulting has become a $1.9 billion a year business…and is expected to grow.
  • Wind and Solar Energy companies also look like promising long-term investments.
  • Low-lying lands along the coast will be most affected and so investors should yank their money out of Thailand and China.
  • Changing conditions will make agriculture difficult in Africa and Latin America. But the agriculture industry should grow rapidly in Canada where warmer temperatures will be more conducive to farming.
  • The price of oil is also likely to rise, making oil a pretty safe bet.

Read more about the opportunity for infrastructure companies, why the BRIC countries are in trouble, and which countries will be best-positioned to capitalize on the opportunity created by climate change over here.

Source: Quartz

The Absurdity Of Amazon’s Free Shipping

November 30, 2012 in Daily Bulletin

On Amazon it’s possible to get free shipping on millions of eligible items. For many items, if the total price comes out to $25 or more then it’ll be sent to your home for free. If you’re signed up for Amazon Prime, then not only can you get free shipping on all eligible items, but Amazon will deliver the product to you in two days. Jeremy Olshan talked about what an incredible deal this was and what it may be costing Amazon:

  • The most expensive thing for Amazon to ship may well be the $3,486 Cannon safe which would normally cost over $700 to ship. Yet shoppers can have Amazon send it to them for nothing.
  • Amazon loses money at a rate of more than $2 billion a year because of shipping costs.
  • The cost of free shipping reduces Amazon’s profit margin on any product from the 5% that retailers typically earn, to 1%.
  • The company made a net loss last quarter and if it weren’t for its shipping offers it would likely have made a substantial profit.
  • Amazon, for its part, seems to hope that it will recoup its costs by making customers so loyal to the company that they will buy everything from them.

Read more about the company’s financials, questions that the company won’t answer, and other mysteries about the true cost of goods for Amazon over here.

Source: Market Watch

The Future Of Police Cars

November 29, 2012 in Daily Bulletin, Signature

Each year the LA Design Challenge asks major automobile companies to predict the future. This year they were asked to suggest what law enforcement might look like in 2025. Some of the ideas that stood out included:

  • General Motors outlined a future where highway patrol uses different, specialized vehicles based on the task at hand. Depending on the objective, the police can choose a vehicle specially designed to either “observe”, “pursue”, or “engage”.
  • Honda saw the police of the future operating out of a vehicle that acted as a command and control center. That vehicle would simply monitor the roads, and then could launch unmanned road-drones that could pursue and pull-over wayward drivers.
  • BMW combined the best of GM’s and Honda’s ideas. It too envisions a future where the police operate out of a single mothership like vehicle with the ability to launch drones. However it envisions the cops being able to launch different types of specialized drones depending upon the situation.
    • In heavy traffic a flying drone can descend upon a suspicious driver, and in other scenarios the police can launch a ground drone to pursue their target.

Read Subaru’s, Honda’s and Mercedes’ speculations about the future of law enforcement over here.

Source: Autoblog

Via: Popular Science

Buy A House, Get A Visa?

November 29, 2012 in Daily Bulletin

Soon it might be possible to get the citizenship of a country simply by buying a house there. Henry Grabar reported:

  • After the recent financial crisis western countries have had an over-supply of housing. Spain has decided to deal with this problem by offering Spanish residency to foreigners who are willing to buy a house in the country.
  • Other countries have similar programs. Portugal, Ireland, Hungary and the United States all make it possible to be a resident in exchange for money.
  • In the European Union the Spanish plan might create tensions. Under the Schengen agreement individuals can move freely among the countries. Those European countries with stricter immigration policies might not be as happy with Spain’s newer, more liberal rules.
  • There are also concerns that it could lead to speculators from all over the world investing in Spanish property, and driving up rental prices, while contributing nothing.

Read more about the issues and concerns raised by the plan over here.

Source: The Atlantic

Via: Marginal Revolution

The Economics Of Hotel Rooms

November 28, 2012 in Daily Bulletin

The cheapest apartments will cost you about $30 a night. The cheapest hotels cost about $90 a night. Why are hotel rooms so expensive? Matthew Yglesias explained:

  • The American tax code treats homeowners favourably; the rationale is that they invest in the community and this should be encouraged.
  • Hotel guests, in contrast, do no such thing, and thus hotels are charged sales taxes and hotel occupancy taxes.
  • Hotels are generally located on prime real estate and this raises prices.
  • When you pay for a hotel you also pay for daily maid service, telephone operators, and concierges.
  • Business travelers have expense accounts that they use to pass on the costs to their clients. They don’t really care about costs and this creates demand which drives prices up.
  • Finally the headline price that the hotels advertize isn’t necessarily the lowest price available. Instead the same rooms are marketed to lower-income, cost conscious people at bargain rates. Thus hotels only charge high prices to those who are willing to pay.

Read about other quirks of the tax code that make it preferable for business travelers to get higher priced hotels, the money value of time, why Airbnbn might change things, and how hotels sell their unused rooms at low prices over here.

Source: Slate

An International Diplomacy Consultancy

November 28, 2012 in Daily Bulletin

Cristina Odone wrote about Independent Diplomat – a consultancy that helps marginalized non-state actors gain access to the upper echelons of diplomats:

  • Independent Diplomat helps set up meetings between the world’s top decision makers, such as members of the security council, and those who want to present a case to them.
  • It played a role in helping South Sudan become its own state and it is currently working with Somaliland, Kosovo, and the Marshall Islands among others.
  • While it is a consultancy, it is not a lobbyist organization. It does not make the case for its clients, rather, it creates a forum where its clients can have their voices heard.
  • It is also selective about the groups it chooses to work with. They only help “the good guys”.

The full article offers a fuller critical perspective of what Independent Diplomat is and what it is trying to do, as well as its place in a changing international system. If you’re interested in the topic, it’s well worth a read.

Source: Foreign Policy