In a previous post, Mumbling in the Dark, I argued that too much attention was being paid to Eskom’s proposed increased charges and too little at 5 separate points, the first being their actual cost of production. It seems that NERSA has been looking at this and has discovered some areas where Eskom was incorrectly…
The safety rules and rigorous enforcement of these regulations damages the profitability of the entire industry – just not in the way you might think. Regulations and Big Bank Buildings Why have banks historically had impressive marble-slathered floors and columns, high ceilings and ornate, heavy front doors? Would you really deposit your salary and savings…
I blogged recently about why I park on the fourth floor of the Cape Town airport parkade, and also about understanding and utilising unlikely but extreme events to your advantage. There is actually a link between these two posts. Parking on the top floor does have a cost. It takes longer to drive up all…
Insurance and gambling have much in common. They both involve uncertainty and money and the rational consumer will, on average, lose money through the interaction. Both business models involve leveraging the tail of probability distributions (one nasty and one nice). The tail of a distribution includes the very bad and very good possible outcomes, that…
Interconnect fees and the reasons for their reduction are possibly the most misunderstood “big” news story over the last twelve months. The hype and hoopla around this topic is fueled by our feelings as consumers of being charged too much big big monopoly companies. So I should start by saying that I’m not saying that…
They should charge more. Â Hotels and B&Bs, your uncle’s Seapoint flat, airlines and taxis and the guys polishing shoes at the airport and garden services mowing lawns should all charge more during the world cup. “But they’re profiteering” you cry! Â Well, yes, in a word. But if the incredible expense of building stadia in the…
Are you outraged at the proposed increase in electricity prices from Eskom? If you are, you’re not alone. 88% of readers polled in a News24 poll were “outraged” at the increase. The problem is that all this outrage is irrelevant at best, and dangerously distracting at worst. Why price is the wrong thing to worry…
The Taxi It’s fair to say the South African taxi industry isn’t besotted with the Bus Rapid Transport (BRT) system. It’s understandable too. No matter what assurances are provided around newly jobless taxi drivers being placed within BRT, the reality is that a more efficient service with larger vehicles will need fewer drivers. It’s also…
