Author: Art Diamond

Amazon Experiments with Brick-and-Mortar

(p. A11) This week, Amazon revealed the location of its second brick-and-mortar bookstore, which will open in a few months in Southern California, at a mall near the University of California, San Diego. The online retailer seems to have big ambitions for its physical stores.
On Wednesday [March 9, 2016], Nick Wingfield, who covers Amazon for The New York Times, visited the only Amazon bookstore in existence, in the University Village mall in Seattle. From inside the store, he had an online chat with Alexandra Alter, who writes about publishing for The Times. They discussed Amazon’s strategy and how the retailer’s stores differ from other bookstores. Here’s what they had to say:
ALEXANDRA ALTER: Hi Nick! You’re reporting live from the mother ship! What’s it like?
NICK WINGFIELD: The best part is, I just tested the free Wi-Fi and it’s 114 Mbps, easily the fastest I’ve ever gotten. Thank you, Jeff Bezos!
ALEXANDRA: Great, so you can just buy stuff from the Amazon website while you’re sitting in the store. Unlike Barnes & Noble, I bet Amazon doesn’t mind if people browse in its store then go buy it online.
NICK: Exactly. Here’s the deal: At first glance, it looks like an ordinary but nice Barnes & Noble store. It’s clean and well-lit and corporate. It doesn’t have the charm of a funky used-bookstore. Once you start poking around the shelves, you notice the differences.
ALEXANDRA: How is the selection different? How are the sections organized?
NICK: They have 5,000 to 6,000 book titles, fewer than what you would find at a big Barnes & Noble. All of the books are arranged cover out, rather than spine out, in the belief that it makes browsing more friendly. I am so buying that “Boho Crochet” book.
. . .
ALEXANDRA: . . .
So, some Amazon skeptics have suggested that books are just going to be window-dressing and what Amazon really wants is a place to showcase its digital devices. Is there a prominent area for Amazon devices?
NICK: Electronics, most of them made by Amazon, like Echo and Fire TV, are the nucleus of the store. They’re spread out on tables and stands so you can fiddle with them just like you can fiddle with iPads at the Apple Store a short hop from here.
Knowledgeable people tell me that Amazon views its physical stores as an important way to introduce the public to new, unfamiliar devices. Techies might be comfortable buying a device like the Echo online — a speaker and virtual assistant for the home — but a lot of people will want to see it in the flesh first. That said, I don’t think Amazon stores would have saved the Fire Phone, the Amazon smartphone that belly-flopped. I should also say that books are not necessarily going to be the focus of all of the stores it opens in the future. Amazon intends to experiment.

For the full dialogue, see:
ALEXANDRA ALTER and NICK WINGFIELD. “Amazon, in the Material World.” The New York Times (Sat., MARCH 12, 2016): B1 & B5.
(Note: bold and italics in original print version; ellipses added.)
(Note: the online version of the dialogue has the date MARCH 10, 2016, and has the title “A Trip Through Amazon’s First Physical Store.”)

Arctic Sea Ice Rebuilds “a Significant Amount”

(p. A9) Using new satellite data, researchers at University College London reported in Nature Geoscience on Monday [July 20, 2015] that the total volume of sea ice in the Northern Hemisphere was well above average in the autumn of 2013, traditionally the end of the annual melt season, after an unusually cool summer when temperatures dropped to levels not seen since the 1990s.
“We now know it can recover by a significant amount if the melting season is cut short,” said the study’s lead author Rachel Tilling, a researcher who studies satellite observations of the Arctic. “The sea ice might be a little more resilient than we thought.”

For the full story, see:
ROBERT LEE HOTZ. “Arctic Ice Is Able to Rebuild, Study Says.” The Wall Street Journal (Tues., July 21, 2015): A9.
(Note: bracketed date added.)
(Note: the online version of the story has the date July 20, 2015, and has the title “Sea Ice Might Be More Resilient Than Thought.”)

Which Moment of Flux Do the Environmentalists Want to Preserve?

At the APEE meetings in early April, I heard a lecture by Shawn Regan in which he praised a book by Daniel Botkin. The point that Regan was making was that a key difficult issue in environmentalism is to decide, when you want to preserve and protect the environment, which moment of the environment’s constantly changing flux, do you want to preserve? With, or without, us, the natural state of the environment is constant change, not stasis.

A recent book by Botkin that makes this point, is:
Botkin, Daniel B. The Moon in the Nautilus Shell: Discordant Harmonies Reconsidered. New York: Oxford University Press, 2012.

Some Entrepreneurs Support Big Government, Except When They Are the Ones Regulated

(p. A11) In October [2015], author Steven Hill will publish a book called “Raw Deal: How the ‘Uber Economy’ and Naked Capitalism Are Screwing American Workers.” At the political conventions next summer, which party’s attendees will be most likely to have read that book?
The ironies run deep. The Uber driver who ferried Jeb Bush around San Francisco said the former Florida governor was a nice chap but added that he still planned to vote for Mrs. Clinton–the candidate who regards the innovations that has led to the creation of his job as a problem that government needs to solve.
But is Uber co-founder Travis Kalanick any different? Even as he struggles with regulators taking aim at his business model, Mr. Kalanick has spoken up in favor of ObamaCare. During a visit to New York last November, he enthused that ObamaCare was “huge” for companies like his, on the grounds that the individual market has democratized benefits such as health care.
That’s true insofar as it means he doesn’t have to provide it for his drivers. But the reality is that ObamaCare is to health what taxi commissions are to transportation. And if Uber’s co-founder can’t see the difference, maybe he deserves the Bill de Blasios and Hillary Clintons coming after him.

For the full commentary, see:
WILLIAM MCGURN. “MAIN STREET; Uber Crashes the Democratic Party; The ride-share app is bringing out the inner Elizabeth Warren.” The New York Times (Tues., July 21, 2015): A11.
(Note: bracketed year added.)
(Note: the online version of the commentary has the date July 20, 2015.)

Were Paul McCartney and Michael Jackson Copyright Trolls?

Sometimes all those who own patents as investments are derisively chastised as “patent trolls.” I have argued that some of those so-labelled are productively increasing the funding for invention. If Nathan Myhrvold is a patent troll then we should similarly view Paul McCartney and Michael Jackson as copyright trolls. Why do McCartney and Jackson get a pass, while Myhrvold is chastised?

(p. B3) It is one of the twice-told tales of the music business: Decades ago, Michael Jackson received some sound investment advice from Paul McCartney.

Back in the early 1980s, Mr. McCartney showed his friend a notebook full of songs he owned, by artists like Buddy Holly. The real money, Mr. McCartney suggested, was in music publishing, the side of the business that deals with the songwriting rights for big catalogs of songs. As Mr. McCartney himself has told it, Jackson perked up and said, “I’m gonna buy your songs.”
He did. And it was the smartest deal Jackson ever made.
In 1985, Jackson bought the ATV catalog, which included 251 Beatles songs, along with a few thousand others, for $47.5 million. It proved to be Jackson’s most valuable asset, helping to finance a lavish lifestyle even as Jackson’s own musical career reached a low point in the years before his death in 2009.

For the full story, see:
BEN SISARIO. “McCartney’s Tip Pays Off for Jackson’s Legacy.” The New York Times (Weds., MARCH 16, 2016): B3.
(Note: the online version of the story has the date MARCH 15, 2016, and has the title “Paul McCartney’s Tip to Michael Jackson Pays Off.”)

My paper on patents, is:
Diamond, Arthur M., Jr. “Seeking the Patent Truth: Patents Can Provide Justice and Funding for Inventors.” The Independent Review: A Journal of Political Economy 19, no. 3 (2015): 325-55.

Sanders’s Economics Agenda: “Magic Flying Puppies with Winning Lotto Tickets Tied to Their Collars”

(p. A9) WASHINGTON — With his expansive plans to increase the size and role of government, Senator Bernie Sanders has provoked a debate not only with his Democratic rival for president, Hillary Clinton, but also with liberal-leaning economists who share his goals but question his numbers and political realism.
. . .
By the reckoning of the left-of-center economists, none of whom are working for Mrs. Clinton, the proposals would add $2 trillion to $3 trillion a year on average to federal spending; by comparison, total federal spending is projected to be above $4 trillion in the next president’s first year. “The numbers don’t remotely add up,” said Austan Goolsbee, formerly chairman of President Obama’s Council of Economic Advisers, now at the University of Chicago.
Alluding to one progressive analyst’s criticism of the Sanders agenda as “puppies and rainbows,” Mr. Goolsbee said that after his and others’ further study, “they’ve evolved into magic flying puppies with winning Lotto tickets tied to their collars.”

For the full story, see:
JACKIE CALMES. “Left-Leaning Economists Question Sanders’s Plans.” The New York Times (Tues., FEB. 16, 2016): A9.
(Note: ellipsis added.)
(Note: the online version of the story has the date FEB. 15, 2016, and has the title “Left-Leaning Economists Question Cost of Bernie Sanders’s Plans.”)

“Progressive” Eugenicists Attacked Free Enterprise

At the APEE meetings in early April, I heard a lecture by Jayme Lemke in which she praised a promising-sounding book by Thomas Leonard. I looked the book up on Amazon and found that it describes how many of the “progressives” who advocated increasing government control of the economy, were also among the advocates of the now-discredited eugenics movement.
The book is now on my “to-read” list and I will report more when it hits the top of the list (say, in about 2020 ;).

The book praised by Jayme, is:
Leonard, Thomas C. Illiberal Reformers: Race, Eugenics, and American Economics in the Progressive Era. Princeton, NJ: Princeton University Press, 2016.

Many Empirical Research Results Are False

(p. B7) Research on 100 studies in psychology found in 2015 that more than 60% couldn’t be replicated. Similar results have been found in medicine and economics. Campbell Harvey, a professor at Duke University and president of the American Finance Association, estimates that at least half of all “discoveries” in investment research, and financial products based on them, are false.
. . .
Brian Nosek, a psychology professor at the University of Virginia and executive director of the Center for Open Science, a nonprofit seeking to improve research practices, has spent much of the last decade analyzing why so many studies don’t stand up over time.
Because researchers have an incentive to come up with results that are “positive and clean and novel,” he says, they often test a plethora of ideas, throwing out those that don’t appear to work and pursuing those that confirm their own hunches.
If the researchers test enough possibilities, they may find positive results by chance alone — and may fool themselves into believing that luck didn’t determine the outcomes.

For the full commentary, see:
JASON ZWEIG. “Chasing Hot Returns in ‘Smart-Beta’ Can Be Dumb.” The Wall Street Journal (Sat., Feb 13, 2016): B1 & B7.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Feb 12, 2016, and has the title “Chasing Hot Returns in ‘Smart-Beta’ Funds Can Be a Dumb Idea.”)

Environmentally Insensitive Explorers Club Mammoth Meal Was a Joke

(p. A11) The story of the 1951 annual Explorers Club dinner is famous, at least among explorers, paleontologists and connoisseurs of exotic cuisine. In brief, mammoth was served.
A club member and journalist reported on the menu shortly afterward in The Christian Science Monitor, and club members have been talking about it ever since.
“At my first dinner, when I was a new member, they told me about it,” said Jack Horner, a dinosaur paleontologist at Montana State University and an inspiration for the character of the paleontologist in the original “Jurassic Park” book. “And they were talking about having another.”
Sadly, as with so many great stories, this one was too good to be true, as a group of Yale researchers reported Wednesday in the journal PLOS One.
. . .
They assumed the flesh was thousands of years old, which meant that testing for DNA was more complicated than testing a more recent bit of flesh. “Also,” she said, “the meat was cooked.”
. . .
In the end, after multiple tests, the team determined that the meat was neither mammoth nor sloth, nor ancient, nor even a mammal. Turtle soup had also been on the menu that night, before sea turtles were in such trouble, and the bit of flesh that the scientists tested turned out to be green sea turtle, Chelonia mydas.
It seems that Mr. Dodge had been having a bit of fun, and that he was the only one in on the joke.

For the full story, see:
JAMES GORMAN. “The Explorers Club Once Served Mammoth at a Meal. Or Did It?” The New York Times (Tues., FEB. 4, 2016): A11.
(Note: ellipses added.)
(Note: the online version of the story has the date FEB. 3, 2016.)

The academic article that documents what the Explorers ate, is:
Glass, Jessica R., Matt Davis, Timothy J. Walsh, Eric J. Sargis, and Adalgisa Caccone. “Was Frozen Mammoth or Giant Ground Sloth Served for Dinner at the Explorers Club?” PLoS ONE 11, no. 2 (2016): e0146825.

Indian Government Scientists Fight Global Warming by Reducing Cow Belches

(p. A10) Let no one say that India isn’t doing its bit to fight global climate change: Government scientists are working hard to reduce carbon emissions by making cows less flatulent.
Consider the numbers: India is home to more than 280 million cows, and 200 million more ruminant animals like sheep, goats, yaks and buffalo. According to an analysis of satellite data from the country’s space program, all those digestive tracts send 13 million tons of methane into the atmosphere every year — and pound for pound, methane traps 25 times as much heat as carbon dioxide does.
. . .
Scientists at the Cow Research Institute in Mathura, around 100 miles south of New Delhi, are tinkering with cattle feed, seeking a formula that will create less gas for the cows to belch out. (That is how most of it is released, by the way; scientists say much less comes from farting.)
But a team of researchers in the southern state of Kerala is working on a long-term answer.
. . .
. . . dwarf animals, which are about one-quarter the weight of crossbred cows, produce only one-seventh as much manure and one-tenth as much methane.

For the full story, see:
ELLEN BARRY. “What in the World; Cows: India’s Reply to Global Warming.” The New York Times (Thurs., MAY 5, 2016): A10.
(Note: ellipses added.)
(Note: the online version of the story has the date MAY 3, 2016, and has the title “What in the World; India’s Answer to Global Warming; Cows That Belch Less.”)