Monthly Archives: February 2017

Taxi drivers overcharge when passengers are on expenses

MORAL hazard is a problem that crops up frequently in economics. People behave differently if they do not face the full costs or risks of their actions: deposit insurance makes customers less careful about choosing their banks, for example.

Moral hazard can also be second-hand. Take medicine. A patient with private insurance may be happy to sit through extra tests, and a doctor may be happy to order them. Doctors might be more reluctant to order tests if they know that the patient would bear the full cost.

A newly published paper* sets out to test this secondary problem by examining a common-enough situation—taking a taxi ride in a strange city. The authors, a trio of academics at the University of Innsbruck, sent researchers on 400 taxi rides, covering 11 different routes, in Athens, Greece. In all cases, the researchers indicated they were not familiar with the city. But in half the cases, the researchers indicated that their employers would be reimbursing them for the journey. The researchers in the latter group were 17% more likely to be overcharged for their trip and paid a fare that was, on average, 7% higher.

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Valeant predicts tough 2017 with revenue to decline

(Reuters) - Valeant Pharmaceuticals International Inc on Tuesday said that 2017 would be another year of transition with revenues falling as much as 8 percent amid drug price pressure and fewer prescriptions.

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Why You Can’t Get Out of Hard Work

Will Flanagan, general manager of Chicago Inno, says there really no trick around working hard and you just know when you are.

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House Financial Services chairman sees Dodd-Frank reform this year

WASHINGTON (Reuters) - Reform of Wall Street rules and consumer protects imposed after the 2008 financial crisis is likely this year, and much of the law could be undone through a number of ways, the Republican chairman of a key House of Representative...

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Target shares dive on earnings outlook, price cut plans

NEW YORK (Reuters) - Target Corp said on Tuesday it will rely more on low prices to compete with rivals like Wal-Mart and Amazon, admitted many of its stores needed freshening up, and told Wall Street its sales and profit estimates for 2017 are too hi...

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JPMorgan eyes boosting dividends, buybacks as capital piles up

(Reuters) - No. 1 U.S. bank JPMorgan Chase & Co may return more money to shareholders than it earns over the next few years, it forecast on Tuesday, an encouraging sign for investors who have been waiting for richer dividends and share repurchases.

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Dow breaks 12-day record streak ahead of Trump speech; retail down

(Reuters) - U.S. stocks slipped on Tuesday and the Dow snapped a 12-day streak of record closes as investors awaited President Donald Trump's address to Congress, while a disappointing outlook from Target dragged down retailers.

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Domino’s revenue rises more than expected on strong U.S. sales

(Reuters) - Domino's Pizza inc on Tuesday reported better-than-expected rise in revenue for the fourth quarter, helped by strong sales in the United States and international markets, and by a higher store count.

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