Archive for September, 2007
The Idea of Cherry-Picking
The idea of cherry-picking is applied to a number of business contexts. It refers, for example, to customers who ignore products that are bundled together by a manufacturer (who in the process may disguise crosssubsidies between high-margin and low-margin components of the bundle). Such customers prefer to bundle their products together for themselves, selecting the [...]
Cost-Benefit Analysis
Cost-benefit analysis is the weighing-scale approach to reaching business decisions: all the pluses (the benefits) are put on one side of the balance and all the minuses (the costs) are put on the other. Whichever weighs the heavier wins. If the costs weigh more, the proposal gets the thumbs down; if the benefits weigh more, [...]
