The Economics of a Ransom

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In The AtlanticMegan McArdle traces the economics of ransom negotiation:

Economists would describe hostage negotiation as a bilateral monopoly price negotiation that is structurally just a special case of chicken. That is, unlike a barrel of oil or a freight car full of soybeans which can trade on an extremely liquid market with innumerable buyers and sellers, a hostage has exactly one seller (the kidnappers) and exactly one buyer (the employer and/or family of the hostage). When there is only one buyer, the opportunity cost for ransoming the hostage is zero. L

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BRIEF-Southern California Edison and update on the San Onofre nuclear generating station

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* Southern California Edison and California independent system operator

corporation clarify planning dates and process regarding the San Onofre

Nuclear Generating Station

* Southern California Edison-it,california iso seek to clarify media statements

on restart of san onofre nuke station

* Sce-says units at nuclear station will only be returned to service when sce

and the nrc are satisfied it is safe to do so

* Sce says has not filed a request with the nrc seeking to restart the plant

* Sce-June dates for restart of units 2 and 3 were provided by sce to the iso

as a purely administrative matter in March of 2012

* Sce – both units of the plant are currently safely shut down for inspections,

analysis and tests

((Bangalore Equities Newsroom; +91 80 4135 5800; within U.S.

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Some investors question Best Buy revamp

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Best Buy said it plans to close 50 of its US big-box stores, cut 400 corporate jobs, and trim $800 million in costs.

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Total plans to fly staff to gas-leaking North Sea platform

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LONDON/PARIS (Reuters) – French oil company Total , which wants to fly experts to a North Sea oil platform to plan how to cap a well that has been spewing gas for the past week, will discuss the safety of the scheme with British experts on Monday.

Totals Elgin platform is enveloped in a huge gas cloud, and company officials will discuss with the Health and Safety Executive the risks involved in sending experts there on a helicopter.

Total wants to stop the gas leak in two ways – by injecting drilling mud to kill the well, which would involve sending experts to the wellhead platform; and by drilling two relief wells, a safer, slower, more expensive solution.

On Saturday Total confirmed that a gas flare, lit during the evacuation to burn off excess gas, had gone out of its own accord, reducing the threat of an explosion.

The flare had been burning only 100 metres from the site of the gas leak, and its extinction made a return to the abandoned platform considerably less dangerous.

“The company has prepared risk assessments for landing a helicopter on the platform and sending a team to carry out observations at the site of the gas release,” an HSE spokesman said on Sunday.

Industry sources said the HSE, which can advise on compliance with regulations but cannot instruct Total how to proceed, was expected to say that both Totals planned projects were acceptable on safety grounds.

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A $640 Million Lottery Jackpot and A Lot of “Skewness”

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The press and the streets in the U.S. are buzzing today about the world record $640 million lottery jackpot that will be drawn tonight at 11pm in Atlanta, GA. 

This excitement is an example of what economists call “skewness. The odds of winning have been quoted as 175 million to 1 yet all of us are hoping to be that one. We explained the irresistible appeal of skewness (and the lottery) in our Freakonomics Radio podcast The No-Lose Lottery. In that episode, we also introduced a new financial product called Prize-Linked Savings accounts an idea that utilizes skewness to encourage saving. We also e

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ADR REPORT-ADRs fall as Total drops on North Sea worries

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NEW YORK, March 27 () – U.S.-listed shares of foreign companies dropped on Tuesday, dragged lower by a slide in energy-related shares as prospects appeared dim for a timely closing of a natural gas leak off the Scottish coast.

A cloud of explosive natural gas boiling up from the North Sea out of a leak at Total’s evacuated Elgin Franklin platform forced another shutdown as the French energy company warned it could take six months to halt the flow.

Shares of Total listed in the United States tumbled 6.9 percent to $51.00. Britain’s BP, which had a blowout two years ago at its Deepwater Horizon rig in the Gulf of Mexico, lost 2.6 percent to $45.04 in New York trade.

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