Centives

Zachary Crockett wrote about cotton candy:

• The desert can be traced back to Italy in the 15^th century when sugar syrup was used to create delicate strands of candy.
• Due to the labour intensive process, as well as the high price of sugar, the “webs of gold and silver” were a treat to be enjoyed by the very rich.
• Oddly enough, it was a dentist in 1897 who invented a machine that allowed for the treat’s mass production. It was called “fairy floss”.
• The machine was debuted at the World’s Fair and despite the high cost per serving, it was a hit. The inventor dentist and his partner earned close to half a million in today’s dollars at the fair.
• We owe another dentist in 1921 for coming up with the term “cotton candy”.
• These days manufacturers of the machines like to note that since the ingredients are so cheap – all that is needed is a small amount of sugar, air, flavouring, and dye – each serving is almost pure profit.

Read about the history of cotton candy, why Australians still prefer to call it fairy floss, and more over here.

Source: Priceonomics

Annie Banerji wrote about a startup that’s manufacturing shoes which automatically guide you:

• The shoes link to the wearer’s smartphone and guide them on their intended route, using the phone’s map app. If they should turn then the shoe will vibrate letting them know which way to go.
• The shoes also monitor number of steps taken, distance travelled, and calories burned.
• The forgetful will appreciate that it vibrates anytime their phone is too far away – indicating that the user has left it behind.
• The shoes will cost around $125.

Read about the shoes, find out why they’re called “LeChal”, what the fashion conscious can do if they’d prefer to match the shoes with their outfits, and more over here.

Source: Phys.org

Via: Marginal Revolution

China’s insurance market has struggled to grow, despite low rates of market penetration. Insurers have resorted to offering quirky insurance policies to drum up interest write Clare Baldwin and Diana Chan:

• Naughty child insurance helps parents to cover damages from children throwing tantrums. It costs 44 yuan a month and covers for up to 100,000 yuan of damages.
• Brides to be can get insurance against becoming pregnant before their honeymoon, getting divorced, and can even purchase a financial instrument that rewards them for remaining married.
• During the recent World Cup ardent fans could purchase insurance for over-drinking, being attacked by outraged fans, and their favourite team losing.
• Fans of the popular hotpot can get insurance against burning their mouth.
• Travelers can get insurance against smog ruining their vacations.
• And during the moon festival it was possible to purchase protection against clouds covering the moon.

Read about the different types of insurance, how much they cost, why the authorities have taken a dim view of the practice, and more over here.

Source: Reuters

Via: Marginal Revolution

John Samuel Raja D. noted that the surge in America’s production of fracked gas bought great riches to farmers 21,000 km away:

• Guar gum is a key ingredient used in the process of fracking due to its binding, thickening and emulsifying qualities.
• It comes from a crop call guar. India is the world’s largest producer of it.
• As the shale gas boom progressed India’s exports of guar-gum shot up from $20.2 million to $3.5 billion in less than 10 years.
• The price of guar increased tenfold to $500 per 100kg.
• Farmers took the bounty to pay off their debts, build homes, and arrange lavish weddings.
• Since then frackers have found synthetic alternatives and prices have dropped to around $100 per 100kg.

Read about why the prices dropped, the future outlook for the farmers, and more over here.

Source: Quartz

The Economist took a look at how superstitions affect investment returns:

• The Chinese word for “eight” is similar to the word for “prosperity”, and the word for “four” is similar to the word for “death”. The superstitious favour the former, and avoid the latter number.
• Local investors in Taiwan are 50% more likely to pick a trade ending in 8 than in 4.
• The most superstitious had returns that were 0.03% lower than the least superstitious – this coincidentally comes out to an annual loss of 8.8%.
• There are other superstitions and even cognitive biases that traders fall to, such as the preference for round numbers.
• Algorithmic traders can take advantage of such predictable behaviours to extract profits.
• Evidence indicates that overtime, as traders get more experienced, they lose their superstitions.

Read the rest of the article to find out more details here.

Source: The Economist

Derek Kravitz and Colm O’Molloy took a look at the murky world of hostage negotiations:

• “Kidnap and Ransom” (K&R) insurance has become a booming industry as companies increasingly insure their executives in conflict ridden areas.
• A periodic premium is paid, and if a kidnapping happens, the ransom is paid by the insurer.
• Total premiums have risen from $50 million ten years ago to at least $250 million today.
• The average ransom paid is around $3.75 million. Premiums can be as high as $1,500 per employee, per day.
• Exact numbers are difficult to find as those ransomed typically sign non-disclosure agreements in an attempt to prevent other groups from being encouraged to try kidnappings.
• The practice is controversial. According to one estimate Al-Qaeda and other groups have made more than $125 million through ransom payments to fund their operations.
• Yet the practice continues to grow – big news pieces about piracy, terrorist, and other risks has pushed companies to purchase more of the policies.
• Kidnappings used to mostly be associated with Latin America. But kidnappings in the Middle East have grown from 4% of the world total to 17% in the last decade.

Read about the business, the “kidnap reports” that organizations can buy, the details of one K&R insurer, and more over here.

Source: The Guardian

Laura Smith-Spark wrote about an entrepreneurial panda:

• Ai Hin, a giant panda, was meant to star in the broadcast of a Panda birth.
• The panda was selected after it had shown signs of pregnancy such as changes in hormone levels and eating preferences.
• However scientists later confirmed that the panda was not pregnant.
• It is theorized that pandas sometimes fake pregnancies because those that actually get pregnant get preferential treatment such as air conditioning and more food.

Read more here.

Source: CNN

Apparently there’s a roller coaster lobby. They’d prefer that children had more play time writes Benjamin Freed:

• In Virginia a 1986 law makes it illegal to start class before America’s Labour Day.
• The law was designed to give theme park owners an extra week of crowds.
• One major theme park operator made over $200,000 in political donations in what is seen as an effort to keep the law on the books.
• 324 free tickets are also recorded as being given to the lawmakers that are willing to report such things.

Read about some of the other lobbying done, what the Governor has to say, and more over here.

Source: Washingtonian

Jessica Plautz caught up with Malaysia Airlines:

• The carrier is now estimated to be losing $2.2 million a day as planes fly empty.
• The airline was unprofitable even before the twin disasters of MH17 and MH370.
• Malaysia Airlines has doubled the commission it offers to travel agents who book routes on their flights.
• It has also slashed prices – a flight from Kuala Lumpur to Beijing costs $238. Other carriers charge over $500.
• If the airline has to shut down because of the crash it won’t be the first. Three years after flight 103 from London to New York was bombed in the 80s, the airline Pan Am went bankrupt.

See photos of the empty planes and terminals, and read more over here.

Source: Mashable

David Kravets wrote about an equation created by researchers to predict Supreme Court rulings:

• The model has a 70% accuracy rate when predicting the rulings of Supreme Courts going back 60 years.
• In contrast a Supreme Court fantasy league (seriously) has found that its power players have an accuracy rate of about 75%.
• Fantasy SCOTUS and creators of the algorithm will soon be holding a competition to see which one is more accurate.
• If effective, the model could be used to help litigators determine their trial strategy.
• The model uses information about the justices such as the party that appointed them and the year they were born as variables.
• It also takes into account information about the case and the general disposition of the court among the 90 variables it tracks.

Read about the model, how it works, why it’s better than models before it, and more over here.

Source: ArsTechnica