You think you know economics? Cause I do (kind of)
– Megha Kajale
TY BSc
Batch of 2022-25
Reading time ~ 5 min
‘How much Economics is a third-year economics student expected to know?’ is exactly the question I asked myself as I entered my last year of undergraduate study at GIPE. A million-dollar question, especially as one stands at the precipice of deciding a future career path. Calling myself an excellent student with intellectual opinions would be quite a stretch. Do I know economics? Debatable. But can I pretend to wield economic principles and concepts in my daily life like a pro? Absolutely.
It’s all well and good to learn complex theories and discern patterns in data to draw conclusions. These are undoubtedly, necessary skills for any budding economist. But, as a fellow budding economist myself, I would argue that it is just as necessary to give your hardworking brain a break and apply your nerdiness to simple real-life situations (Which, arguably, is more fun). This is an attempt by an econ nerd to sound smart while navigating life, all achieved with a blend of theory, caffeine, and just the right amount of procrastination.
Take a simple example – The 8:10 Newsletter is in the process of publishing its inaugural print edition for the academic year 2023-24. The team has been working hard for quite a few months to make this happen. It’s a Herculean task – stressful and time-consuming. After all, time is money, and opportunity costs are real. Then why not apply my (limited) econ knowledge for this endeavour?
Consider this as a guide to ‘ How to Ask Your College for Money 101.’ ‘The Economics of Printing a College Newsletter’
Responsible or Responsibly Chill: Personal Decisions
Every grand project begins with a decision, and with every decision, there come trade-offs. Before diving into the process of publishing the newsletter, it is vital to know your priorities. Consider your opportunity costs. The opportunity cost of taking up the responsibility is your sleeping time and content binge-watching sessions. The trade-off here is clear: sacrificing the precious time you could have spent enjoying, for work errands and meetings. However, the potential upside is significant. It is an impressive addition to your CV. A worthwhile investment, which would yield long-term rewards.
With personal priorities sorted, we move on to the next step.
Dancing with the Devil: Convincing the College
Convincing the college administration to back your project is like dancing with the devil in Prada shoes. (GIPE loved the idea, but for creative purposes, let’s make it dramatic). It is a high-stakes game that demands a meticulously crafted cost-benefit analysis. It needs to be presented with the gravitas of an investment banker giving advice. Emphasise that the newsletter isn’t just a pet project, it is a golden opportunity for the college. Highlight the potential ROI – increased student engagement, positive publicity, and of course, your undying gratitude. Earn their trust, that the resources supplied will not go to waste. If all fails, a dramatic pause and a few well-timed tears might just tip the scales in your favour.
The Art of Haggling: Fieldwork and Market Research
Having convinced the college that this newsletter is the next big thing, it’s time for some good old-fashioned fieldwork. Dare to witness the consumer theory in action. But before that, prepare to confuse your brain with yet another round of trade-offs. What kind of paper should you choose? How many pages should it have? How many copies do you make? These choices aren’t just aesthetic. These are economic decisions. A better-quality newsletter would automatically mean asking for more money, which unsurprisingly, might not go well. Resources are going to be limited and your aim is to maximise the output given the constraints.
Keep in mind the law of demand and economies of scale as you collect information from vendor to vendor. Take into consideration the marginal utility of each additional copy printed, using it to decide the number of copies. It is here that you need to understand the market and use it in your favour. Consider the elasticities, as multiple competitors exist in the market.
Sealing the deal: Work, work, and work
You get different quotes from vendors and are allotted a specific budget. Vendor selection becomes a straightforward task: find the one that maximises utility and output. Now begins the complex problem of constraint optimisation. You have the money and the resources, but how do you make the most of them? The production process here is labour-intensive.
You will find yourself in quite a labour-intensive production process. Writing, editing, and designing a newsletter each require a unique set of skills and expertise. Assign specific people to these roles and marvel at the efficiency of your well-oiled operation (only in your dreams) that would make Adam Smith.
Money problems? Game Theory to the Rescue
Midway through the project, you realise that the initial budget won’t suffice—a classic economic reality. An additional budget from the college is your only hope. It is time to sharpen your knives and have some fun with game theory. Anticipate what the administration might say when you request more money. Prepare for any curveballs they might throw at you. Convince them that the additional budget is absolutely necessary for the successful publication of the newsletter.
Bring up the concept of Pareto improvement, where everyone benefits without being worse off. Argue that a better newsletter will enhance the college’s image, benefiting both the institution and its students. Emphasise the hard work already put in by the students as a sunk cost that can be capitalised on by providing the necessary funds. Align the college’s interests with yours, making it clear that this is a mutual gain. Rejoice in your success, for you have defeated the most formidable opponent of your college life (or get ready to put in your own money to not see your hard work go to waste)
With the budget secured, the only thing left to do is print the actual copies. Congratulations, you’ve successfully navigated the economics of printing a college newsletter! You’re not just an adept user of econ jargon; you’ve now earned yourself a freshly printed newsletter.
So, there you have it. You’ve just learnt the stressful yet thrilling process of printing a college newsletter—economist style. And let’s be honest: if you’ve slogged through all this economic jargon and theoretical babble, you’re either genuinely intrigued or have been brilliantly duped into a promotional piece for the 8:10 Newsletter.
Is this article an attempt to brag about my Econ knowledge? Maybe. Is it a shameless nudge to promote the first-ever print edition of the 8:10 Newsletter? Absolutely.
Two words guys – Utility maximisation.