Results for “the tipping point”
48 found

Economists versus spam

The short history of society’s fight against spam–usually defined as unwanted commercial e-mail–may be about to pass into a significant third phase. In the first phase, it was geeks who led the resistance, using techie weapons such as e-mail filters with fancy Bayesian mathematics. In the second phase, politicians joined in, eager to get their names on to new legislation–in America, for instance, 36 states and Congress have passed laws of some sort against spam. Now, in the third phase, the economists are taking over.

The market opening for the economists is obvious. Both the geeks and the politicians are widely seen to have failed miserably.

Great writing from The Economist but it is not clear that we have an answer that will be accepted. The obvious solution is to price email. Even at a penny per email most spam would become uneconomic. The Economist argues, however, that internet culture is against pricing and micropayments are more expensive than they are worth. They recommend instead several groups who are creating clubs of approved bulk emailers. The emailers who join are guaranteed passage of their email past spam filters – club members either pay to get on the list or are fined if recipients complain. Unfortunately, these ideas only work indirectly by making the job of spam filters easier. If the clubs take off, a positive tipping point may be reached but that is a big if and in the meantime the plan assures that for many people spam will get worse before it gets better.

This economist has another idea. The problem of spam is really a negative externality generated by the people who actually buy the products spammers offer. Thus, I suggest sending out fake spam and prominently posting the names of all those who respond….. What product to advertise in the fake spam? I suggest, “length enhancers.”

Blogs make media more personal

Personality is a key reason why blogs will continue to gain readers. Consider this:

Media was institutional. Now it is personal.
By personalizing media, I don’t mean customizing it (My Yahoo, Your Yahoo, All God’s Children Got Yahoos).
I mean humanizing it, taking on the personalities of people, not of institutions. Consider:
: The success of FoxNews can be attributed to the rise of the personalities and opinions of its anchors…People magazine personalized all news, for now every story has a People angle. I was at the magazine at this tipping point. Once was, a big TV show on the cover yielded big sales. That ended with the remote control and its revolution of choice. The institution — the show — no longer mattered. Now what sold was the event in the star’s life. It was personal. And soon, it wasn’t just entertainment but news of any sort that got that treatment in People and everywhere. News was personal.

Reality TV is a similar phenomenon. For the full opinion, with links, read here.

Many people love the idea of getting their news from Glenn Reynolds as a filter, with his personal commentary, rather than looking to an institutional filter. We all want celebrities or authorities of one kind or another, and blogs help to fill this demand.

The higher the bill, the lower your tip percentage

Two psychologists studied nearly 1000 tips for restaurants, hair salons and with cab drivers. The larger the bill, the smaller the percentage tip. This is consistent with a reciprocal “payment for service” model. You pay the waiter enough to get the job done, but you don’t feel he has to work much harder to bring you a more expensive entree. Or you might simply be feeling poorer, the larger the bill.

Note that the effect levels off for sums larger than $100. After that point larger bills don’t lead to smaller tips in percentage terms. Servers also get bigger tips when they split the bills for large groups. Read here for more detail. Other research shows that servers get bigger tips if they resemble or can mimic the customer.