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pricing the priceless parking spot

Planet Money had a fun podcast a couple of days ago about Eric Meyer, the young founder of Haystack, a Baltimore-based app that allowed people to auction off their (public) parking spot to the highest bidder. MonkeyParking, a similar app, got attention last year in San Francisco.

The founders, in both cases, focused on the time-saving, traffic, and environmental benefits of such an app. Clearly there are real costs to people spending long periods of time circling the block in search of parking. UCLA economist Donald Shoup has argued that 30% of traffic in central business districts results from people looking for parking.

But these apps quickly generated enormous hostility. People used words like “disgusting,” “evil” and called it “JerkTech”—all to the apparent surprise of Meyer, at least. Within months, Boston and San Francisco had passed ordinances forbidding the selling of public parking spots. Haystack and MonkeyParking were basically shut down by the end of the year. (MonkeyParking has since retooled as a way to sell the parking in your driveway.)

This is a familiar story to economic sociologists. Some area of life that was previously outside of the market is suddenly brought into it. Violent feeling erupts, as such transactions are seen to challenge the moral order. (See Zelizer, Healy, Quinn, Chan, etc.) Generally, the market wins, and morality adapts.

There aren’t too many things—humans, organs (though even that’s eroding)—where a bright line still forbids buying and selling. Why, then, do Haystack and similar apps generate such hostility?

I think there are a couple of independent things prompting the hostile reaction.

1.  Something that was, at least superficially, free, suddenly comes to cost money. People really don’t like being charged for things that used to be free, even if they were always paying for it somehow. (See: airline fees.)

2.  Someone is making money by selling public property. This one is probably more important to city officials than city residents. From this perspective, the problem isn’t selling the spot, but who’s receiving the gains. Indeed, some of the same cities that reacted so negatively to these apps (I’m looking at you, San Francisco) have introduced dynamic pricing of parking, which allows prices to fluctuate with demand. (Think: Uber surge pricing.)

3.  Now only the well-off can afford to park. This objection is to my mind the most legitimate. And while I fully recognize that it is really wasteful to have people circling around looking for parking, I don’t think it can easily be dismissed.

Now, I don’t want to stake any big claims around the inalienable right of Americans to park their cars. After all, you have to have a certain amount of money to have a car in the first place. And in general I think policies that discourage driving are good.

And it’s the very basis of capitalism to accept that there are things that some people can afford and others can’t, and to make one’s peace with that. But the thing about price caps (whether the cap is zero, as for street parking, or some flat rate, as with taxicabs) is that while they are inefficient, they are also democratizing. Yes, you may have to circle the block for 20 minutes. But dammit, so do the tech entrepreneurs who are pricing you out of your apartment. There are some things you can’t buy your way out of.

We live in a society in which inequality continues grow. At the same time, technology is improving our ability to make people who are willing (and able) to pay a lot do just that. That may be efficient. But it further reduces the sense that we’re all in this game together. And that’s the issue we don’t have a good solution for.

Written by epopp

June 8, 2015 at 12:00 pm

Posted in economics, technology

what’s really important about the arizona state mooc announcement

Arizona State has been in higher ed news a lot this week. The Atlantic just published a fairly fawning article on ASU’s partnership with Starbucks, featuring trenchant critiques of traditional colleges like, “The customer service is atrocious.”

Today, the news is ASU’s announcement that it will offer its entire freshman year online, through MOOCs. (Just when you thought they were dead!) Here’s the deal: ASU is partnering with EdX, the nonprofit Harvard-MIT collaboration, to produce the MOOCs. Students don’t have to apply, and they don’t have to pay in advance. But after they complete the class, if they decide they want college credit, they can pay ASU $300-600 (the final price is not set) and it will show up on a transcript indistinguishable from any other class.

Of course, people love to hate on ASU president Michael Crow. Dean Dad pointed out that Maricopa Community College, in ASU’s backyard, only charges $250 a credit and provides library access, among other amenities. John Warner focuses on the importance of the first year to student persistence, implying that disadvantaged students will be hurt. Jonathan Rees amps up the rhetoric, calling ASU the first “predator university.”

The Chronicle’s analysis focuses on what it sees as the catch: ASU’s MOOC students won’t be eligible for financial aid. Because students won’t officially enroll until after they’ve completed the MOOC, what they’ve learned is considered “prior knowledge,” making them ineligible for federal aid. ASU admits this is an obstacle, but suggested that “the university hoped to find some way to make aid possible in the future.”

What the Chronicle doesn’t point to, though, is where this road ultimately leads. There’s no way ASU is committing to this if it doesn’t see a pathway to federal aid down the road. Who among the underemployed folks ASU is targeting can cough up $600 to pay for a single course? That’s more than two weeks’ work at minimum wage.

And indeed, noises about how to solve this problem are already being made. Conversations are underway in the Senate about finding ways to give accreditation — and thus access to aid — to “nontraditional providers” like (drumroll…) EdX.

Truthfully, I’m not that worried about ASU and EdX. I think it’s going to prove hard to get the disadvantaged students they’re aiming for to finish MOOCs, even with financial aid, and even with ASU’s well-publicized innovations in data analytics. And I think that the nonprofit EdX, with its close ties to Harvard and MIT, is unlikely to launch a race to the bottom in extracting revenues from students.

But you know who would be happy to suck at the teat of the federal financial aid system? The edutech disruptors, who talk a good game about transforming higher education but will quickly enough start tranforming student loans into company profits once it’s time to raise the next round of venture capital.* When we have the opportunity to channel our financial aid dollars not only to the University of Phoenix but to the Disruptive EduBadge Academy, then we will have fully corrupted the system. The reason, if it needs to be spelled out, is that there is no reason to think that their courses will require learning, that pesky obstacle between them and those tantalizing financial aid dollars.

I’m not anti-technology, or anti-innovation. And I think traditional colleges are deeply flawed. But I am very, very much against expanding the money-laundering side of our financial aid system. And that is the coal mine into which the ASU-EdX canary is being lowered.

* I just Googled “silicon valley edutech” and got the San Francisco EduTech Meetup Group for — you can’t make this stuff up — “connecting folks who are passionate about the education space.”

Written by epopp

April 24, 2015 at 2:11 am

driverless cars and the end of death

In my course in introductory sociology, I have a module on health. One lecture describes the leading causes death, across age groups and across time periods. In modern times, one of the leading causes of death is “unintentional injury.” What does that mean? Roughly speaking, the three major categories of unintentional injury death are, in order, falling, auto accidents, and accidental poisoning.

The interesting thing is that these are all types of death that relate to economic development: cars, chemical, tall buildings, stairs and so forth. The other side is that economic development can also help us out. For example, in about one generation, driverless cars will be widespread. The implication is that drunk driving will be eliminated over night and accidents relating to drifting driver attention will disappear overnight. Truck accidents should also disappear. My hypothesis is that computer driven cars will probably be better than most people when they drive in the rain or snow. They might even automatically shut down if conditions are bad enough.

Bottom line: Economic development has unintended consequences. Sometimes they are bad, such as auto related deaths. But development can introduce solutions. The driverless car will be one such example.

50+ chapters of grad skool advice goodness: Grad Skool Rulz ($2!!!!)/From Black Power/Party in the Street!!

Written by fabiorojas

April 6, 2015 at 12:01 am

Posted in fabio, mortality, technology

more (angry) tweets, more heart attacks

PS Magazine reports on research that links tweet sentiment and health:

Measuring such things is tough, but newly published research reports telling indicators can be found in bursts of 140 characters or less. Examining data on a county-by-county basis, it finds a strong connection between two seemingly disparate factors: deaths caused by the narrowing and hardening of coronary arteries and the language residents use on their Twitter accounts

“Given that the typical Twitter user is younger (median age 31) than the typical person at risk for atherosclerotic heart disease, it is not obvious why Twitter language should track heart disease mortality,” writes a research team led by Johannes Eichstaedt and Hansen Andrew Schwartz of the University of Pennsylvania. “The people tweeting are not the people dying. However, the tweets of younger adults may disclose characteristics of their community, reflecting a shared economic, physical, and psychological environment.”

Not a puzzle to me. I have argued that social media content is often an indicator – a smoke signal – of other trends. Thus, if people are stressed due to environmental conditions (the economy, unemployment), they will have heart attacks and write angry text. The only question is when the correlation holds. For more discussion of the more tweets/more votes/more anything phenomena, click here.

50+ chapters of grad skool advice goodness: Grad Skool Rulz ($1!!!!)/From Black Power/Party in the Street!! 

 

Written by fabiorojas

January 30, 2015 at 12:19 am

more tweets, more votes: it works for TV!!!

nielsen-social-tv

Within informatics, there is a healthy body of research showing how social media data can be used for forecasting future consumption. The latest is from a study by Nielsen, which shows some preliminary evidence that Twitter activity forecasts television program popularity. In their model, adding Twitter data increases the explained variance in how well a TV show will in addition to data on promotions and network type. Here’s the summary from Adweek.

50+ chapters of grad skool advice goodness: Grad Skool Rulz ($1!!!!)/From Black Power/Party in the Street!!

Written by fabiorojas

January 14, 2015 at 12:07 am

zeynep tufekci and brayden king on data and privacy in the new york times

My co-bloggers are on a roll. Zynep Tufekci and Brayden King have an op-ed in the New York Times on the topic of privacy and data:

UBER, the popular car-service app that allows you to hail a cab from your smartphone, shows your assigned car as a moving dot on a map as it makes its way toward you. It’s reassuring, especially as you wait on a rainy street corner.

Less reassuring, though, was the apparent threat from a senior vice president of Uber to spend “a million dollars” looking into the personal lives of journalists who wrote critically about Uber. The problem wasn’t just that a representative of a powerful corporation was contemplating opposition research on reporters; the problem was that Uber already had sensitive data on journalists who used it for rides.

Buzzfeed reported that one of Uber’s executives had already looked up without permission rides taken by one of its own journalists. Andaccording to The Washington Post, the company was so lax about such sensitive data that it even allowed a job applicant to view people’s rides, including those of a family member of a prominent politician. (The app is popular with members of Congress, among others.)

Read it. Also, the Economist picked up Elizabeth and Kieran’s posts 0n inequality and airlines.

50+ chapters of grad skool advice goodness: Grad Skool Rulz/From Black Power

Written by fabiorojas

December 8, 2014 at 4:39 am

this is not a post about ello

This is not a post about Ello. Because Ello is so last Friday. But the rapid rise of and backlash against upstart social media network Ello (if you haven’t been paying attention, see here, here, here) reminded me of something I was wondering a while back.

Lots of people are dissatisfied with Facebook — ad-heavy, curated in a way the user has little control over, privacy-poor. And it looks like Twitter, which really needs bring in more revenue, is taking steps to move in the same direction: algorithmic display of tweets, with the ultimate goal of making users more valuable to advertisers.

The question is, what’s the alternative? There have been a lot of social network flavors of the month, built on a variety of business models. Some of them, like Google Plus, are owned by already-large companies that would be subject to similar business pressures as Facebook and Twitter. Others, like Diaspora (remember Diaspora?), were startups with an anti-Facebook mission (privacy, decentralization), but collapsed under the weight of their own hype.

I can’t imagine that a public utility model would work for a social network — I just don’t see “government-owned” and “fast-moving technological change” going together successfully. But I keep wondering why a Wikipedia model couldn’t work. Make it a 501(c)3. Attract some foundation funding — it’s a pro-democracy project. Solicit gifts from pro-privacy people in the tech industry — there are lots of those. Then once it’s off the ground, ask users for donations.

Sure, there is the huge, huge hurdle of getting enough of a network base to attract new users. But it seems like the costs should not be insane. If it only takes 200 employees to run Wikipedia, as large as it is, how many would it take to get a big social network off the ground? Facebook employs 7000, but a lot of them have to be in the business of figuring out how to sell Facebook.

Maybe there have been (failed) efforts like this and I just haven’t noticed. Or maybe the getting-the-user-base issue is really insurmountable. But it seems like if a real Facebook alternative is to emerge, it can’t just be from a corporate competitor (e.g. Google), and the startup/VC model (e.g. Ello) is going to be susceptible to all the same problems as it grows. Why not a different model?

Written by epopp

September 30, 2014 at 2:21 pm

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