Dynamic pricing at sporting events

Kevin Arnovitz at Truehoop reports that the New Orleans Hornets are embracing variable pricing for tickets for the upcoming NBA season. But more interesting is the link to a story about tickets sold by the San Francisco Giants, the first team to completely embrace dynamic pricing.

Last season (2009), the Giants played around the concept of dynamic pricing. Based on demand for tickets for each game, the prices in this section of about 2,000 tickets would fluctuate. When I was in San Francisco last August and was looking for Giants tickets, I saw this section online and was intrigued by it. (For the record, I bought tickets in other seats on StubHub which were cheaper than the variably-priced seats.)

Based on the success of this small sample, the Giants went ahead and introduced dynamic pricing for all the tickets in AT&T Park (a beautiful stadium) during the 2010 season. They are the first team to do this and now several other teams are tinkering with the concept on a small scale.

The last occupied high-rise at Cabrini-Green

Mary Schmich of the Chicago Tribune discusses the last occupied high-rise still standing at Cabrini-Green in Chicago: the 1230 N. Burling building.

Soon, there will be no more buildings like this that had come to symbolize poverty after being built in the 1950s and 1960s. The poor and lower-class have been moved out, some to new mixed-income neighborhoods while others have slipped through the cracks of the system. Though these buildings may disappear, the problems once present in them have not.

Proclaiming the end of the “McMansion era”

CNBC reports that the real estate site Trulia.com says “the McMansion era is over.” This is based on evidence that more people want smaller homes:

Just 9 percent of the people surveyed by Trulia said their ideal home size was over 3,200 square feet. Meanwhile, more than one-third said their ideal size was under 2,000 feet.

“That’s something that would’ve been unbelievable just a few years back,” said Pete Flint, CEO and co-founder of Trulia. “Americans are moving away from McMansions.”

The comments echoed those made in June by Kermit Baker, the chief economist at the American Institute of Architects.

“We continue to move away from the McMansion chapter of residential design, with more demand for practicality throughout the home,” Baker said. “There has been a drop off in the popularity of upscale property enhancements such as formal landscaping, decorative water features, tennis courts, and gazebos.”

“McMansions just look and feel out of place today, given the more cautious environment everyone’s living in,” said Paul Bishop, vice president of research for the National Association of Realtors.

And homebuilders are heeding the call: In a survey of builders last year, nine out of 10 said they planned to build smaller or lower-priced homes.

This is interesting information – the McMansion was and is commonly cited as part of the excess of the late 1990s and early 2000s. But I have a few questions and thoughts:

1. We are in the middle of a housing crisis, one that is virtually unprecedented in recent history. Could these results simply be the result of this period? Look at the data over time: Americans since 1950 have progressively wanted larger homes. Might this change as soon as the economy or housing market picks up again?

1a. We would have to wait and see whether this shift might be a longer-term move to an emphasis on quality and appointments rather than sheer space. Since family size has dropped over the years, it makes sense that homes might not get so large. Or perhaps more people subscribe to some green ideas about having a small footprint.

2. There is still some demand for homes over 3,200 square feet. If you look at the Trulia infographics, most people seem to want homes around the 2,000-2,600 square foot range. These are not small homes – they would be slightly smaller than the average size of new homes built in most years of the 2000s and are larger than most American homes built after World War II.

3. This is survey data which gives us some measure of what people want to buy. However, people still have to make choices on the open market – will they turn down larger houses for smaller houses for an extended amount of time?

4. Will home prices go down or stay low in the long run – or will builders make up for having smaller homes with more features that will cost more?

5. There are some questions about whether a downturn in McMansions is part of a larger, more radical shift toward a new kind of suburbia. Perhaps. But even if this were the case, it would take a while for these new developments to be large enough in number to counter the typical views of suburbia and it would also require Americans to develop a new sense of community.

Will the future be ruled by cities or suburbs?

Two commentators disagree in a special issue of Foreign Policy on global cities: one says cities are the places of the future while another says suburbs are key.

1. In Foreign Policy, Parang Khanna discusses global cities, a concept developed by sociologist Saskia Sassen. Khanna suggests such cities are growing to a point where they exceed the ability for nations or the United Nations to control them. The conclusion is that cities are quite important:

What happens in our cities, simply put, matters more than what happens anywhere else. Cities are the world’s experimental laboratories and thus a metaphor for an uncertain age. They are both the cancer and the foundation of our networked world, both virus and antibody. From climate change to poverty and inequality, cities are the problem — and the solution.

2. Joel Kotkin responds and claims a more dispersed population, in suburbs, can lead to better outcomes in areas like generating wealth, less inequality, and a cleaner environment. He suggests this is particular an issue if we encourage large cities in the developing world:

The goal of urban planners should not be to fulfill their own grandiose visions of megacities on a hill, but to meet the needs of the people living in them, particularly those people suffering from overcrowding, environmental misery, and social inequality. When it comes to exporting our notions to the rest of the globe, we must be aware of our own susceptibility to fashionable theories in urban design — because while the West may be able to live with its mistakes, the developing world doesn’t enjoy that luxury.

An interesting debate – both places have their own issues.  One could ask what residents would prefer to live in (both in the developed and developing world): the wealthy and glamorous megacity or the comfortable and affluent suburbs? Or perhaps different nations could have different planning and policy goals? Or perhaps we need some of both cities and suburbs…

Politics in sociology

A behavioral sciences graduate from Israel describes his experiences in a sociology department and compares sociologists to journalists at YNetNews:

Anyone who ever read a sociological essay immediately realized that to a large extent a sociologist is just like a newspaper columnist.

The sociologist’s columns tend to be longer and more deeply reasoned, yet at their base there will always be an expression of a wholly political view.

While this former student describes a department where only one ideology was allowed, he raises an interesting issue in sociological work. On one hand, research is supposed to be science: rational, logical arguments and theories built upon accurate measurements of what is actually happening in the world. On the other hand, researchers do have opinions and political stances and they tend to do work in areas of their own interest.This was first made clear to me in graduate school when professors quickly switched between their activist and political interests and the research pieces they were working on.

My research methods class starts with a discussion of Max Weber’s essay about “value-free” sociology. Weber suggests sociologists should not make value judgments. Students tend to argue that we all have a bias and this is very difficult to remove from our social science work.

The comparison to journalists is also interesting. In my introduction to sociology class, I suggest sociologists are different than journalists in that sociologists draw upon more comprehensive data and are not just writing opinions or drawing conclusions based on a few interviews. Additionally, journalists often describe trends or events while sociologists are interested in explanations and the mechanisms that lead from Point A to Point B.

It sounds like this former student’s call for ideological pluralism in sociology comes from some personal experiences where his opinions did not line up with those of his professors. Yet his essay is a reminder of the (sometimes thin) line between research and politics.

Quick Review: Pleasantville

I’ve seen parts of this 1998 film before but I watched it again recently to see if I want to use it in a class on suburbs. Two modern-day teenagers end up back as part of a family in a 1950s suburban world and they start bringing color to this less-than-idyllic community. Some quick thoughts about the film:

1.The film is a critique of suburban life, particularly that of 1950s television shows like Ozzie and Harriet and Leave It To Beaver. The critiques are typical: suburban residents are repressed (more on this in a moment), women are in a subservient role, and the people are conformists who just like things to stay the way they are.

2. Sexual repression is the major theme throughout. The teenage female protagonist quickly charms another high school boy and sets off big changes at Lovers Lane. The mother of the family explores her feelings, the manager of the diner does as well, and the whole town generally goes crazy. While there are other themes, like conformity, patriarchy, and being closed off from the outside world, they are not explored as much.

3. The whole black and white vs. color scheme is a clever tool. The two teenagers who end up back in the 1950s find a black & white world but as this world opens up, things turn to colors. It is visually interesting to watch this contrast throughout the film.

4. The sexual repression theme is somewhat heavy-handed by the end though there is a twist: the teenage female protagonist who first introduces sex to the community finds out that there is a value in books and ideas. While the rest of the teenagers want to go nuts, she pulls back and decides there are more important things for her to explore.

5. In the ending scenes, the characters ask what they are supposed to be doing in life and the response is “we don’t know.” While on one hand this is a refutation of the 1950s world where “we just do things because that is how they are done,” this is not very satisfying: the better alternative is left unexplained.

An interesting film with some surprises. I wish it could have explored some other suburban issues beyond sex and conformity…but perhaps that is a lot to ask.

(This film was generally well-received by critics: it is 85% fresh, 70 fresh out of 82 reviews, at RottenTomatoes.com.)

Zagat rates fast food and full service chains

Zagat, the restaurant rating firm, has recently released results of a survey of 6,500 fast-food fans. The survey covers both fast food and full-service chains and has a variety of ratings including best burger and best value.

This quantification of the fast food and full service chain industry is interesting. Such food is considered by some to barely be real food. Zagat’s reputation is generally based on reviewing fine restaurants, not popular chains. So is the goal to help Zagat reach a broader audience? This is an example of an odd pairing of high-brow and low-brow culture.

After observing Dairy Queen’s 5th place spot in the popular quick-refreshment chains, one commentator says, “Of course, I can’t help but wonder: will we begin to see “Zagat rated” stickers adorning the take-out window at Dairy Queen?

Technology to pull us together

Facebook has introduced a new feature (Facebook Places) that allows users to “check-in” at certain locations. Facebook’s vice president of product suggests this is exactly the sort of technology that will bring us together rather than pull us apart:

“The entire goal of this product, and in general what we’re trying to develop here, is that the ‘third place’ is alive and well and that technology can actually be the thing that pulls us away from the TV and out to the nightclub or out to the concert or out to the theater or out to the bar,” Cox said. “Technology does not need to estrange us from one another.”

The concept of the “third place” was developed in Ray Oldenburg’s book The Great Good Place: Cafes, Coffee Shops, Bookstores, Bars, Hair Salons, and Other Hangouts at the Heart of a Community first published in 1989. Oldenburg says the third place is the space between home and work. This sort of space has recently disappeared from the lives of many Americans whereas our ancestors had spaces where they could gather with friends and community members and vent about and discuss work and family and politics.

Facebook, of course, is not the first to introduce this technology. But since it has such a big user base, perhaps it can change how humans interact in social spaces. Or perhaps not.

The lonely American

Research shows that we might be more lonely than ever. Daniel Askt sums up some of the research:

In America today, half of adults are unmarried, and more than a quarter live alone. As Robert Putnam showed in his 2000 book Bowling Alone, civic involvement and private associations were on the wane at the end of the 20th century. Several years later, social scientists made headlines with a survey showing that Americans had a third fewer nonfamily confidants than two decades earlier. A quarter of us had no such confidants at all.

In a separate study, Nicholas Christakis and James Fowler, authors of Connected: The Surprising Power of Our Social Networks and How They Shape Our Lives (2009), surveyed more than 3,000 randomly chosen Americans and found they had an average of four “close social contacts” with whom they could discuss important matters or spend free time. But only half of these contacts were solely friends; the rest were a variety of others, including spouses and children.

The rest of the piece is a thought-provoking rumination on friendship, particularly among men.

Young evangelical says churches shouldn’t strive to be “cool”

In the Wall Street Journal, 27-year old evangelical Brett McCracken suggests churches shouldn’t try so hard to be cool:

If the evangelical Christian leadership thinks that “cool Christianity” is a sustainable path forward, they are severely mistaken. As a twentysomething, I can say with confidence that when it comes to church, we don’t want cool as much as we want real.

If we are interested in Christianity in any sort of serious way, it is not because it’s easy or trendy or popular. It’s because Jesus himself is appealing, and what he says rings true. It’s because the world we inhabit is utterly phony, ephemeral, narcissistic, image-obsessed and sex-drenched—and we want an alternative. It’s not because we want more of the same.

McCracken sounds like he is suggesting the church should be counter-cultural rather than go along with the culture. This seems fairly obvious given the radical message of Christianity – it is difficult to reconcile this with today’s American culture. But churches also want to attract members and the glitzy and glamorous ways to do this seem attractive.

Follow-up questions: does this approach from churches lead to long-lasting attendance or spiritual growth? Is “real” what most emerging adults are looking for in church and religion? And what is “real” anyway?

McCracken recently published a book titled Hipster Christianity that further examines this issue.