The Economics of Everyday Life

Analytical Article

Kshirja Bansal

12 min read

The Economics of Convenience: How Food-Delivery Platforms Turn Time into a Business

Food-delivery platforms initially used discounts and free delivery to attract customers and build a market around convenience. As costs and competition increased, platforms shifted their focus toward profitability. Customers now face higher fees, restaurants pay commissions, and delivery workers deal with uncertain earnings and expenses. The article argues that the industry's future depends on improving efficiency, using new revenue sources such as advertising and subscriptions, and balancing the interests of all three groups.

Research Article

Paing Soe Thar

17 min read

Financing the Flow: What Role Does Land Value Capture (LVC) Play in the Financing of Transportation Infrastructure?

This article examines how Land Value Capture (LVC) can help finance the growing costs of public transportation infrastructure. It explains the difference between funding and financing and explores mechanisms such as Tax Increment Financing, betterment levies, connection fees, and developer contributions. The article focuses on Hong Kong’s MTR Corporation and its Rail + Property (R+P) model as a key case study. It shows how increases in surrounding property values generated by transport infrastructure can be captured to support railway development and operations. Finally, it discusses why Hong Kong is particularly suited to this model and whether similar approaches could be applied in other cities.

Research Article

Yani Tyagi

12 min read

The Mimesis of Desire: The Cultural Production of Demand

The article explores how film and television can create consumer demand through narrative rather than traditional advertising. It argues that products, clothing, locations, and lifestyles shown in fictional narratives can shape preferences before consumers consciously recognise those preferences. The article examines concepts such as mimetic desire, persuasion knowledge, parasocial aspiration, and implicit endorsement to explain why fictional choices can influence consumption. It also discusses how trends created by screen exposure can generate sudden but short-lived demand and how industries have adapted to this phenomenon. Ultimately, the article argues that entertainment media does not merely reflect existing consumer preferences but can actively participate in the creation of new markets and desires.

Research Article

Leticia Sathler Kelen

4 min read

Why Does Money Feel Different When It’s on a Card?: The Economics of Cashless Spending

This article examines why consumers often experience less psychological discomfort when spending money through cards, contactless payments, and Buy Now, Pay Later (BNPL) services compared with cash. Drawing on behavioral economics and the concept of the “pain of paying,” it explains how modern payment systems reduce the psychological friction associated with spending. The article explores how this benefits payment networks, BNPL providers, and retailers by potentially encouraging higher spending and transaction frequency. It concludes by arguing that cashless payments are not inherently harmful, but that consumers should recognise how payment design can influence their spending behaviour.

Feature Article

Kushal Nahata

9 min read

The Economics of Speed: How Motorsport Turned Global Attention into a Business

The Economics of Speed examines how Formula 1 transformed from a traditional motorsport into a global entertainment and business empire. The article argues that the sport's most valuable product is not the racing itself, but the global attention generated by the racing. It traces Formula 1's evolution from Bernie Ecclestone's traditional “toll-booth” model, based on broadcasting rights and circuit hosting fees, to Liberty Media's modern “attention engine,” which actively creates audiences through streaming, social media, Netflix, celebrity culture and expansion into new markets. The article explores how this model has increased Formula 1's revenues, team valuations and sponsorship opportunities, while simultaneously creating pressure on teams, race promoters and fans. It also examines the United States as Formula 1's key “density” market and uses India's unsuccessful Grand Prix as a case study of the gap between having a large audience and being able to monetise that audience. Ultimately, the article questions whether Formula 1 can continue growing at its current pace. Its central argument is that attention alone has little economic value unless it can be efficiently converted into revenue.