[1] When an increase in the efficiency with which a resource is used causes total usage to increase. https://en.wikipedia.org/wiki/Jevons_paradox
See: the entire popular support for efficiency mandates.
(Edit: Also, this very example -- I certainly didn't expect that a faster site would allow that many more users: my model was more "either they want to see your site, or they don't", i.e. inelastic demand.)
The (common) error is to neglect the additional uses people will put a resource to when its cost of use goes down. ("Great news! We get free water now! Wha ... hey, why are you putting in an ultra-thirsty lawn??! You don't need that!")
Also, I wouldn't call it basic supply and demand; depending on the specifics (inelasticiy of demand, mainly), total usage may not actually go up with efficiency.
Which, really, can be summed up by my favorite Yogi Berra-ism "No one goes there nowadays, it’s too crowded."
It usually does actually.
What is happening there is that you have different demand levels at different congestion levels. If you alleviate some congestion by widening the road then demand goes up.
That is only a problem if the demand without congestion is higher than what even the wider road can handle. As long as the new road can handle the higher but still finite demand you get when there is no congestion, there is no problem.
In other words, as long as you make the road wide enough for the congestion-free demand level to begin with, that doesn't happen.
- It may not be physically possible to add enough lanes to e.g. handle everyone who would ever want to commute into L.A.
- Even if that road was correctly sized, it still has to dump the traffic into the next road, through the next intersection point. If you've increased the capacity of the freeway but none of smaller road networks that the traffic transitions to, you've just moved the bottleneck, not eliminated it. And that too may be physically impossible.
In any practical situation car transportation efficiency does not scale well enough that you can avoid addressing the demand side.
That is a separate question from how stupid that is in comparison to the alternative of building higher density residential housing closer to where people work and with better mass transit.
But if people don't want to do that either, you have to pick your poison.
And there really are many cases (Los Angeles notwithstanding) where adding one lane isn't enough but adding two is and where that genuinely is the most reasonable option.
14 percent of LA county (not just city!!) is parking. http://www.citylab.com/commute/2015/12/parking-los-angeles-m...
I'm trying to find a better source, but at one point supposedly 59 percent of the central business district was car infrastructure (parking, roads, etc.) http://www.autolife.umd.umich.edu/Environment/E_Casestudy/E_...
I mean, at what point do you just build a 400 square mile skid pad with nothing else there just to "alleviate traffic"? Hell, that's practically what Orange County is already.
The rest of the day they don't actually park anywhere, they just stay on the road operating by carry one or two passengers at a time instead of eight or nine. Or half them stay on the road operating and the other half go off and park in some huge lot out where land is cheaper until demand picks up again.
Then instead of 3.3 spaces per car you can have <1, and most of them can be in low land cost areas.
It's actually kind of like dynamically allocated mass transit.
Final point, you can certainly build out less parking spaces, but pre-existing spaces won't go away without redevelopment.
This might be an extreme example that won't work for other reasons, but generally adding more lanes will increase demand, so you still won't have enough lanes.
http://www.scottaaronson.com/blog/?p=418
For example:
> Why are even some affluent parts of the world running out of fresh water? Because if they weren’t, they’d keep watering their lawns until they were.
This is the basic reason for naming anything after all a car is just a fossil fuel internal combustion kinetic comvertion wheeled people and goods pilotable transportation platform but saying a car is just easier :)
The paradox is that they tried to reduce demand to reduce consumption, but accidentally reduced price, so increased consumption.
The bit you're missing is that duality, that an action intended to reduce demand could reduce price instead. Applying rules of supply and demand happens as a step after categorising the action, that the action was miscategorised led to a misprediction.
It gets a special term because it was coined in 1865, before most of modern economics was codified and this was a cutting edge finding. You may as well ask why Newton's laws get a special term, because they're all just obvious basic equations in physics that high school students are taught.
Jevons Paradox is only tangentially related. It is based on the observation that sometimes using a resource more efficiently results in higher overall consumption. For example, say 40 kg of lithium is needed for the batteries of an electric car. At some point, 4000 tonnes are produced annually, enough for 100,000 electric cars per year. Now a new battery comes on the market that needs only 20 kg of lithium. Should the lithium producers be worried that the lithium demand will drop, since only 2000 t will be needed for the 100,000 electric cars? Maybe. But if Jevons Paradox comes into play, the annual production of electric cars might triple as their cost drops due to lower lithium usage, and the new demand will then settle at 6000 tpa. So, paradoxically, reducing the amount of lithium in each battery could be good news for lithium producers.
Whether or not Jevons Paradox occurs depends on the elasticity of supply-demand curves, in this case the curves for lithium and for electric cars.
* Engines get more efficient (fewer litres per kilometre traveled). Does the total amount of petrol consumed go down or up?
* Flushes get more efficient (less water / successful flush). Does the total amount of water consumed go down or up?
Both of these have a more efficient use of a consumable quantity. Often, however, more efficient engines lead to more traveling and larger vehicles whereas more efficient flushing leads to reduced total water consumption usually.
The fact that gains from efficiency can be outraced by the induced demand can be seemingly paradoxical. And "seemingly paradoxical" is the only thing that makes anything labelled "Paradox" interesting.
There's a clear and identifiable trend or pattern resultant of the general model, there's no reason not to assign it a shorthand way of being referred to in discussion or study.
Jevons: Quantity required per use goes down, so you might expect total demand to decrease. Instead total consumption goes up.
Giffen: Price per use goes up, so you might expect total demand to decrease. Instead, total consumption goes up.
Either could increase consumption by displacing available substitutes, though that's not necessarily the case with Jevons. They are indeed different phenomena, they just have some similarities.
You know that Andreas Baader and Ulrike Meinhof were the main founders of the terrorist organization RAF (Rote Armee Fraktion (Red Army Fraction)) in Germany. RAF was also the reason that grid investigation was used in the 70th (where lots of innocent people were accused wrongfully) after a RAF terror series, after which some constitutional principles were quashed. The German word for this is "Deutscher Herbst" (German Autumn; https://en.wikipedia.org/wiki/German_Autumn).
These experiences lead (indirectly) to the rise of a completely new party (Die Grünen; The Green Party) and are (besides the experiences with the two dictatorial regimes on German ground in 20th century) one of the reason why data privacy is taken very seriously in Germany.
Thus mentioning RAF, Andreas Baader or Ulrike Meinhof to (in particular older) Germans is perhaps like mentioning Al-Kaida, 9/11, Mohammed Atta etc. to US citizens.
The case of website cost going down and demand going up seems pretty standard.
> To be a true Giffen good, the good's price must be the only thing that changes to produce a change in quantity demanded. A Giffen good should not be confused with products bought as status symbols or for conspicuous consumption (Veblen goods)
Veblen goods = Goods for which demand rises with price because they are status symbols Giffen = Goods for which demand rises with price - Veblen Goods
However there are no examples there that hold, to me this signifies that the only goods for which the law of demand does not apply are status symbols.
No, it's an inferior good (in the economic sense) in which the (negative) income effect of a price increase outweighs the success substitution effect.
What you are describing is a good that has a positive elasticity of demand with respect to income (or, technically, two different goods, because the higher price represents a different good altogether - one with a higher status symbol).
The idea is that the good is the lowest quality way of fulfilling some need - so people buy it because they can't afford anything else.
In practical terms (that may not fill the theoretical definition of the giffen good), spare time in certain circumstances is quite obviously a Giffen good. Once your income increases (which means the opportunity cost of your spare time increases), you are willing to work less, i.e. consume more spare time. Of course, this is not a universal rule, but I think it is obvious that for _many_ people this is the case. If it was _not_ the case, there was no way people in sweatshops work longer hours than western middle class.
https://en.wikipedia.org/wiki/Giffen_good#cite_note-4
I bet you could find it in some video game economies.
If a package of ribeye steak normally sells for $2.99 and doesn't sell well, but then its price changes to $6.99 (but nothing else changes), and demand increases, that steak is a giffen good. The ribeye steak is not conspicuous consumption (unless your definition of status is really loose and includes posting photos of your food to Instagram). What happened there is straightforward: there's an elastic demand for ribeye steak, people saw the price and assumed quality signaling. When it increased to price parity with higher end brands, people assumed quality parity as well.
Conversely, a mechanical watch is specifically optimized to be good at time keeping in the most functional and cost inefficient ways (e.g. assembled in hand in a white gold case with a hand-decorated guilloche dial and proprietary in-house movement mechanisms, etc). That is precisely conspicuous consumption, and thus it's a veblen good.
One good's demand increases because of quality signaling, the other good's demand increases due to status signaling. The point of there being two of these definitions is the nuance in why consumers would purchase luxury items. Theoretically, people don't buy at Trader Joe's just to brag to their upper class friends that they shop at Trader Joe's (this is not a good example but take away a specific brand and you get the gist).
The article states that a necessary condition is that "The goods in question must be so inferior that the income effect is greater than the substitution effect". The reason people are buying more when the price rises is not because of the income effect (which would be because they have less money since the price went up, so demand for inferior goods increases), but rather because they now have evidence/reason to believe that the good is quality.
That's not giffen according to the definition given, which includes a causal factor for the demand curve.
It is simply not true that that a good must be "inferior" to be a Giffen good (unless you adopt a special meaning of inferior, which since it's not necessary to do, I won't agree to). The classic example (thought experiment, without regard to whether it actually happened) is potatoes in poverty stricken Ireland: a poor person's diet would be mostly potatoes (inexensive Econ-Utility (compared to steak): calories, fills the belly) with some meat a few meals a week (expensive Econ-Utility: protein, iron, B vities, tasty, "not potato", even a touch Vebleny)
So, arbitrary budget example, let's say $20 at the grocery gets you $15 potatoes every day and $5 of steak 1 days a week. If the price of potatoes goes up, you need to reduce something, but you need to eat every day so you can't reduce potatoes, so you reduce your steak consumption, but now you have some extra money which you spend on even more potatoes. Price of potatoes went up, consumption of potatoes went up. <-- there is already a theoretical problem there, you could reduce steak just enough to keep potatoes equal, so let's just say you can buy a steak or not buy a steak, no half steaks, OK? just trying to make the point "what is a Giffen good", and not trying to prove whether Giffen goods exist or not.
So, potatoes are not "inferior" to steaks, both are requirements for a balanced diet; I supposed a technical econ-definition of inferior could be designed to mean something along the lines of "inferior is defined to rule out your example, aaight"
In any case, while Giffen goods probably can't exist in a market for any length of time, the concept is completely understandable as a short-term reasonable thing that occurs: I go to the store with cash intending to buy an "assemble your own" burrito with guac, the price of beans went up, I don't have the cash at hand now to get the guac, but it's not a burrito at all without the beans, so I leave out the guac... but turns out by leaving out the guac, I can get a larger size burrito: consumption of beans just went up at the same time as the price. This effect happens for sure... does it happen enough to counteract the people who would leave out the beans and keep the guac? Can the "substition of beans for guac" function always be seen seen to be continuous and differentiable? <-- perhaps not, burrito shops like to have overly expensive add-ons for 2nd order price discrimination, so the price of guac might very well be "quantized" at an absurdly high level, and does that make beans not a Giffen good? ...
my point is, the way you guys are arguing this is leaving too much out, can't be answered and wikipedia at this level of analysis is too unreliable.
Terms of art annoy me (the legal profession and philosophy are full of them, overloaded (OOP definition) on preexisting words) because IANALinguist but I could play one on TV without rehearsing, so my point is, if you want to have a narrow morphology for a word, don't recycle a word that has broad meanings, invent a new word that is precise, like econ-inferior. Then at least when a person doesn't understand what you say, they will think to themselves "maybe I should look up the definition" as opposed to actually believing you said something different than you did.
Nobody can live on potatoes alone, you'd die. Nor can anybody live on steak alone. Neither good can be said to be precisely econ-inferior to another, only econ-inferior over some delta range of prices and/or time (and assuming demand, etc). But the whole question of Giffen goods is also valid only over some delta, so as long as they are different deltas, the definitions would not be in conflict (and vice versa all the variations of that).
Not trying to argue, just trying to clarify what I came upon. Econ theory I think is sound but requires many simplifying assumptions to teach and learn, and then when we talk about whether Giffen good actually exist or not it's easy to lose track of simplifying assumptions like "long term" or "substitution".
cheers.
I remember turning an algorithm upside down, making it so fast, it went from "number crunching wonder" to "users saw nothing, this software is meh".
This while the connection in itself is not THAT bad. I use to use a 3G/4G mobile connection and it generally works excellent, with pretty quick load times, for everything else than javascript-heavy web apps.
I have a hard time understanding why this issue is not paid more attention. Ethiopia alone has some 99 million inhabitants, with smart phone usage growing by the hour. Some sources say "the country could have some 103 million mobile subscribers by 2020, as well as 56 million internet subscribers" [1].
[1] https://www.budde.com.au/Research/Ethiopia-Telecoms-Mobile-a...
There are usually CDN nodes in India. Cloudfront has edge nodes there, google's cdn does.
There's also a Mumbai AWS datacentre.
When you get far away from the common edges, it gets real noticeable.
PING imgur.com (151.101.40.193) 56(84) bytes of data.
64 bytes from 151.101.40.193 (151.101.40.193): icmp_seq=1 ttl=53 time=342 ms
imgur.com works fine
~$ ping python.org
PING python.org (23.253.135.79) 56(84) bytes of data.
64 bytes from 23.253.135.79 (23.253.135.79): icmp_seq=1 ttl=48 time=267 ms
python.org works fine
news.ycombinator.com and reddit.com also works fine even though I'm logged in (there's about a 300ms, 700ms delay in the Network tab of Chrome's devtools for news.ycombinator.com and reddit.com)
PING python.org (23.253.135.79): 56 data bytes 64 bytes from 23.253.135.79: icmp_seq=0 ttl=44 time=615.871 ms 64 bytes from 23.253.135.79: icmp_seq=1 ttl=44 time=539.681 ms
I'm on an island lost in the middle of the Indian Ocean. But ping weren't that different (50 ms more or less) on the continent (I went to RSA and Namibia)
JS-heavy apps make a lot of requests to background servers and should one of those requests fail, apps will hang. It's quite frustrating and I would often load pages with the console open to see which requests have failed so I'm not left wondering what happened.
I think the standard of whats considered slow, bloated, complex has become absurd. I think if the processor companies today release processors that say improves the single thread performance 10 times in two years gmails and facebooks of the world will eat all that up with marginal improvement in functionality. I'm talking about the client side, in the server side yeah they may make 10 times more complex analysis though most likely 80% will go to feeding us more accurate ad.
That also happens on 'good' connections, when some crappy isp router drops the packet without any icmp. The request fails only after a tcp timeout, which is large enough to be noticed. I cannot understand why asynchronous js requests do not involve smart adaptive human-oriented timeouts and why this problem is still not solved in general. TCP timeouts are simply insane nowadays.
Any time you do an XHR you can supply both a success and a failure callback and, if you care at all about your users, the failure callback can come in handy for error recovery, handing off to a retry mechanism, etc.
Modern web apps can be a lot more like fat client apps, just running in a browser. Even there, there's no inherent need for them to be unusable, even over relatively slow connections. A lot of it comes down to latency, and the number of requests going back and forth between client and server, often caused by the sheer quantity of assets many sites load (I'm looking at YOU, almost every media site on the Internet).
I seem to spend my life citing this paper, from 1996, but "It's the latency, stupid" is still relevant today: http://www.stuartcheshire.org/rants/latency.html.
From
How much disposable income will they have though? Most web products like those you describe are produced by businesses looking to make money.
Tax on cars is upward of 200% and traffic is becoming a major issue. When it comes to services, another major challenge is that there are no widely accepted payment mechanisms besides cash and checks. Debit cards only work with ATMs and some very select retailers.
It's worth it to memorize or bookmark the address, in case you ever need it:
http://mail.google.com/mail/h/
(on mobile browsers you need to "request desktop version" and then paste the address again, before you can see it)
My problem with accessing the low-bandwidth Google tools with archaic browsers (http://dplus-browser.sourceforge.net/, etc.) is that Google still requires the high-bandwith login.
Are you aware of any alternative login URLs or authentication mechanisms?
A nice chart showing how many users are in each bucket of load time would be far more useful. One that you could easily change the bucketsize from 0.1ms to 1 second and these types of 'digging' wouldn't even be a second thought.
The average human has, on average, one testicle and one ovary, but there aren't many humans who can actually fit this description.
When they were initially planning the system in 1930s, 40s, they were planning to have the system in use for next 100 years. So they built over sized roads (like 10 lane freeway, without having to stop for traffic lights, that go THROUGH center of a major city).
When the system proved so car friendly, more and more people moved in and bought cars. Within in a short period of time (much shorter than 100), the system is completely jammed.
Always look for unintended consequences...
Also lost in the conversation is opportunity cost: sure people drove more and that drove growth to those areas. However what if the roads had not been built - what would have happened instead? We don't know, but it is fun to speculate. (maybe railroads would still be the most common mode of transport?)
But there was a coalition of mayors and municipal associations that pressured Congress to have the roads pass through their towns (jobs! progress!). President Eisenhower was not amused, but he found out too late to change the design.
A consequence of this was the bulldozing of historically black-owned property to make way for the new roads.
They RIPPED it out thanks to lobbying by car companies and tire companies. Yay to lobbyists.
Now, it takes a billion to build a few miles of a subway/lightrail system that practically goes no where...
https://en.wikipedia.org/wiki/Los_Angeles_Railway
GM, Firestone, and several other companies were indicted in 1949 for attempting to form a monopoly over local transit. The semi-urban legend part (it was never definitively proved there was a plot behind it all) was the ripping out of the streetcars, replacing them with GM-made bus networks.
https://en.wikipedia.org/wiki/General_Motors_streetcar_consp...
Indeed. A couple years ago, the city of St Paul actually formally apologized for exactly this, destroying the primarily black Rondo neighborhood with freeway I-94.
http://www.usatoday.com/story/news/local/2015/07/17/rondo-ap...
The current North American coal proven reserve is less than 300 years of current utilisation rates: http://www.bp.com/en/global/corporate/energy-economics/stati...
It's amazing what a constant increase in growth rate can accomplish. Also the overwhelming tendency for lowered costs to induce an increased demand -- the Jevons paradox.
If you want people to use less of something, increase the cost, not the efficiency.
________________________________
Notes:
1. Henri Erni, Coal Oil and Petroleum: Their origin, history, geology, and chemistry, 1865. p. 15.
https://archive.org/stream/coaloilpetroleum00erni#page/14/mo...
If there's ever a need to widen the road, it can be done without demolishing any tall buildings. I see this in new road layouts in China all the time. Of course, under the road will be a new subway system -- another disincentive for people to buy cars.
Even by the most optimistic estimations, a video that is a few minutes long at 480p will weigh in at 10 megabytes, meaning it'll take them OVER 3 HOURS to download the entire thing.
You would probably be able to browse (slowly), read comments, but not actually do much else.
I used Internet in the 90s and dial-up specifically as recently as 2004 - and have quite a good memory of the experience. Internet at dial-up speed was an extremely valuable commodity, to the point of disabling images in the browser and only downloading the most essential things (which is about as far from a youtube video you can get) - like documents and zipped installers (after researching that it was what you actually needed) and checking email.
Internet "videos" didn't really even exist as content before ~2005 and Youtube. The biggest player before them was Break.com, which posted a whopping 10-15 videos a day.
While someone may have spent several hours waiting for a key software installer to download, almost no one would do the same for a video of dubious quality and content, certainly not in the 90s.
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To illustrate my point even further, the speed we're talking about isn't even dial-up speed. It's 6.5kbit/second, which makes it almost an order of magnitude slower than a 56k modem! 10 times slower!
And people are actually suggesting that someone would spend that valuable bandwidth to spend days to load a video...
Umm. Porn?
I vividly remember waiting hours to download a video in the '90s. The Spirit of Christmas short that spawned South Park, and that news story about the exploding whale, were viral videos that predated modern video sites by many years. You'd download it off of an FTP server somewhere. At one point, the majority of my hard drive was devoted to half a dozen videos that I'd show to everyone who came over.
Basically, watching a video on your computer felt new and exciting and worth waiting for. I'd never do that today even if I were stuck on a slow pipe, but at the time it was oddly compelling.
That always reminds me: Earlier that decade, a major plot arc of Beverly Hills 90210 featured a nightclub called Peach Pit After Dark. The door of the club had a flying toaster, from the PC screensaver After Dark.
Someone doesn't agree with your comment, but rather than come back with a refutation they voted you down instead :)
And someone else don't agree with my comment .. modded down -4
If people chose to download porn over 28.8k modems, that's their choice. Just seems like a waste of time, that's all. Probably quicker just to take your dad's nudie mags rather than wait 6 hours for a 400x300 jpeg.
I remember using "download accelerators" to try and grab files faster back in the day. Who knew they were just doing 4 simultaneous downloads of ranges of the same file eh?
Ah I feel old
Incredibly useful for enormous files like visual basic 6, which I spent like...a month or so downloading in the late 90s.
And before there was YouTube there was flash videos/animations on Newgrounds. The people I hung with back then were into animutations.
Internet video has been a thing a while before youtube got released hoping to capture enough of this thing through offering to host it for free in the hope to be bought later by one of the big players.
The bigger point was simply that people will wait for things they want. Not being able to load instantly changed the style of interaction but not the desire to listen to or watch things and there's far more content available than there used to be. Tell teenagers that the cool music video is available and you'll find a lot of slow downloads over their entire day at school, work, etc.
By the time I got stuck with slow internet again (boycotting Comcast), they had removed that feature and it really sucked. Now I have fiber and the only drama is around Netflix only allowing you to stream a couple movies at once.
I'd rather let it buffer for 10 min, then watch it in 360p because you guys can't figure out your buffering. The same goes for netflix!
I remember frequently spending three hours downloading 5MB files over dial-up in the late 90s. Mostly software, not videos+, but it really just felt like a regular thing back then.
+ Computers nearly didn't have the power to decode video—or even audio—in realtime back then, unless it was the entirely uncompressed kind. I recall ripping a CD to WAV and finding out half-way that my 2GB hard drive was now 100% full.
Ah Napster.
I, too, remember quite vividly waiting 30-40 minutes to download a 5MB installer for WinAmp and ICQ.
I honestly wouldn't even know where to look for videos in the 90s internet. Most people probably didn't have the upload speed to even consider sharing them online.
I remember the first realtime mp3 player on Windows, Fraunhofer IIS' WinPlay3, which launched in '95. Then Winamp came out in '97 and blew our minds.
Even tried it on mpg123 and mpg321 on RedHat on a 486 DX66 - I was poor. Didn't fare any better.
My Pentium 166 on the other hand was much more capable I could multitask while playing Mp3's (I used to play mp3's and Quake at the same time).
AFAIK all sound drivers in Windows accepted standard PCM data.
I'm very young, only 27, and know that I missed a full decade of early internet culture and can't speak to it. Even given that, I had a 14.4 and fondly remember downloading a music video for hours. (No porn on the modems personally, I think I was barely adolescent when we upgraded to cable)
We take file sizes for granted these days.
Right there in the same link, it says that the video page was a megabyte. It's the sentence directly after the 'two minutes' but. The sentence even has some 'all caps' words in it - even skimming, your eye is drawn to it. Why on earth did you stop reading halfway through the penultimate paragraph?
The modern codecs make these super compressed video and sound relatively watchable.