[Most Recent Entries]
Wednesday, February 12th, 2014
|I Indulge In Digital Burgernomics
This is fairly long and wonky to explain why, in the aggregate the objections people are going to raise should cancel out. The notion of using a standardized "basket of goods" to compare currencies is the idea behind the Big Mac Index. Here, the idea is that Netflix, because Netflix is so broadly distributed and the subscriber base of the largest ISPs should have roughly the same user habits, serves as a usefully proxy for downloads of all high-bandwidth content. As a result, we can tell roughly whether an ISP's speed claims are "overvalued" or "undervalued" in the same way the Big Mac Index tells us whether a currency is overvalued or undervalued relative to other currencies as measured by purchasing power.