[VIC – 81] She loves a sale. The evolution of regulation. Playing not to lose. The Big Sick.

Business & Money: she loves a sale

My fiance loves a good sale. Whenever she happens upon one, she gets really excited. “How could I not buy this?? I’m actually saving money.”
This mindset isn’t rare. In fact, it follows basic economic theory. Keeping all else equal, demand rises if price suddenly fall. In reverse, prices go up, demand falls. Pretty straight forward.
The funny thing is, the opposite is true in the markets. Prices go up, investors buy more. Prices go down, investors rush for the exits.
The interesting question, for me at least, is what is the cause and what is the effect? Do falling prices incite fear in the markets, or do fearful investors cause recessions? Conversely, do rising prices lead to optimism and confidence, or do those mindsets push markets higher?
Or is it just a self-perpetuating cycle?

Human Progress: the evolution of regulation

Regulation and innovation go hand and hand. We all want new cool things that increase productivity and make life easier, but not at the expense of our safety and well being.
And if you think about regulation, in and of itself, it too goes through constant iteration, albeit much slower.
To start out, it was all about command and control. We created rules and laws that defined what a person/entity could or could not do. And that’s all well and good with lots of simple things. You have to pay your taxes. You can’t kill people. Seems logical.
But that doesn’t quite cut it when you want to encourage a certain activity without forcing someone’s hand. For example, you might want to encourage investment or economic activity in a particular region. You can’t simply make it illegal to do business elsewhere. But what you can do is create incentives or rebates that incite the same effect. You might, for example, provide tax rebates for particular types of investments or reduce start-up costs for new businesses.
In other words, when the sticks and stones of laws and legal bureaucracy don’t suffice, these market-based regulatory schemes often work nicely.
But now, in the information age, we have an altogether different regulatory framework taking shape. As software infiltrates every area of life, this new framework is often referenced by the simple phrase, “code is law.” That is, regulation can simply be written into the code base for any product or service. A few examples:
Late last year, a car sharing service built on top of Facebook acquired a smaller competitor. In doing so, it was now required to have a Facebook account in order to use the service. While many services offer a “sign up with Facebook” option, in addition to a regular (email/password) signup option, now only the first was available. So, if you want to use the service, I hope you’re prepared to hand over all of your personal information. What does that say about privacy regulation and digital identity?
iOS 11 will come with a safe driving feature this fall. So, instead of a fine or penalty if you’re caught texting while driving, it will now become increasingly difficult to even do it in the first place. Does that infringe on individual freedoms/rights? I don’t know, but it’s definitely something to think about.
Looking into the future, is it even possible to flee the police in a self-driving car? Not likely.
But, at what point will code-based limitations on behavior and free will become unethical? Should people have the choice to make the “wrong” decision?

Philosophy: playing not to lose

I play on a basketball team with a group of friends from college. It’s really great to see these guys on a more regular basis. It reminds me of why we were so close in the first place.
In a game a few weeks back, we were winning by about 20 points at half time to a clearly inferior team. In the second half, we decided to slow the game down to protect the lead. The thought process was basically to play not to lose, instead of playing to win.
Let’s step away from the game for a second. In business, if you’re crushing the competition and making boat loads of money, do you take your foot off the gas and play to “protect the lead.” OF COURSE NOT! You keep innovating and killing it to pour gas on the fire.
When you finally win over the girl of your dreams, do you sit back and stop trying so hard in the relationship? I CERTAINLY HOPE NOT! THAT WOULD BE 🍌🍌🍌🍌🍌!! You wine and dine the hell out of her and remind her every day that she’s the most beautiful creature on the planet!
So back to the game. Long story short, we went on a 10-minute scoring drought, blew the lead, and lost the game. Why did we lose? Well, the reason is pretty damn obvious in hindsight. Why the hell would you do in basketball what makes absolutely no sense in every other arena in life?
Lesson learned!

My Latest Discovery: The Big Sick

The Big Sick is one of the funniest movies I’ve seen in a long time! No seriously, go check it out! In case you haven’t caught the trailer, here it is: