Kiasunomics 2: Economic Insights For Everyday Life. Sumit Agarwal

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distance-travel toll would put a damper on taxi cruising. If you drive Grab, you know where your next passenger is from bookings, at least for most of the time. Then you’ll be cruising less and save on costs,” rationalised the young man.

      “But what about the older people who don’t use Grab? I don’t think they know how to use these ride-hailing apps,” said a concerned Teng thinking of his parents.

      “That’s true,” answered the young man. “Young people just use the app instead of flagging down a taxi along the road, even though at times it might just be cheaper to flag down a taxi. It’s usually the old folks who still flag down taxis. I see the demand for flagged-down taxis declining. And with the new distance toll, I think that may further discourage taxis from cruising for passengers, thus making it harder to flag down an empty taxi.”

       It’s usually the old folks who still flag down taxis. I see the demand for flagged-down taxis declining.

      “Do you think taxis will become obsolete?” asked Teng.

      Seeing the disheartened look on Teng’s face, the young man offered some comfort.

      “Uncle, look at it positively. Times have changed. I see the new distance-travel toll discouraging cruising. Which means as a taxi driver, you’ll have to be smarter. You have to know where to find passengers easily to reduce the distance travelled. You’ll also need to depend more on bookings for the ‘confirmed’ passenger. If you do this, your earnings will be higher as you drive less looking for passengers. Moreover, you won’t be so tired and you’ll be safer on the road. And think about this – there’ll be less pollution on the road when fewer empty taxis are cruising about.”

      Teng had much to consider. His prospects as a taxi driver did not look too promising. He might have to consider taking up a sideline job or maybe even setting up his own business.

       WANT TO KNOW MORE?

      This chapter is based on Sumit Agarwal, Ben Charoenwong, Cheng Shih-Fen and Jussi Keppo (2019), “Fickle Fingers: Ride-Hail Surge Factors and Taxi Bookings,” Working Paper, National University of Singapore, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3157378

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      1For more on this research on how taxi drivers set targets, see Sumit Agarwal, Ang Swee Hoon and Sing Tien Foo (2018), Kiasunomics: Stories of Singaporean Economic Behaviours, Chapter 2 “Taxi Driver, Where Are You?” (Singapore: World Scientific Publishers). To read the academic article, see Sumit Agarwal, Diao Mi, Jessica Pan and Sing Tien Foo (2015), “Are Singaporeans Cab Drivers Target Earners?” Working Paper, National University of Singapore, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2338476. This research has also been published as a commentary; see Sumit Agarwal and Diao Mi, “Why it’s so difficult to get a cab,” Today, (6 October 2016), https://www.todayonline.com/commentary/why-its-so-difficult-get-cab

      2For more on this research on the effects of nearby construction on utilities bills, see Sumit Agarwal, Ang Swee Hoon and Sing Tien Foo (2018), Kiasunomics: Stories of Singaporean Economic Behaviours, Chapter 14 “Mama, Don’t Forget to Switch on the Air-Con,” (Singapore: World Scientific Publishers). To read the academic article, see Sumit Agarwal, Satyanarain Rengarajan, Sing Tien Foo and Derek Volmer (2015), “Effects of Construction Activities on Residential Electricity Consumption: Evidence from Singapore’s Public Housing Estates,” Working Paper, National University of Singapore, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2371314

      2

      CHAPTER

       Productivity

      “So hot, so hot,” grumbled Ah Mah at Singapore’s sweltering heat. “I never remember Singapore to be so hot. Last time when I was young, I could wear long-sleeve blouse when going out. Now I cannot tahan (tolerate) the weather. I perspire so much even when I’m wearing my short-sleeve cotton blouse. Singapore is getting too warm for me.”

      “It’s because you are older now. And fatter too. More fat means more insulation. So you feel warmer,” joked Ah Kong. He thought his wife had been pampered by the air-conditioned comfort since shutting their windows to block out the noise from nearby construction.

      Truth be told, he also shared the same sentiment as his wife. Singapore is getting hotter.

      And he knows this from the walks he makes bringing his grandson to school. Every morning, Ah Kong and Ah Mah will bring Ethan to his kindergarten. The morning walk is quite pleasant. They call it ‘exercise’ and it gives them time alone with Ethan, talking to him about school and his friends. But it’s the walk back in the afternoon when they bring Ethan home that is unbearable under Singapore’s enervating heat. Ah Kong and Ah Mah would feel quite spent.

      Wiping beads of perspiration off their forehead, they would then head to the cool air-conditioned comfort afforded by the nearby community centre. This saves them from incurring air-conditioning expenses at home.

      “I’ve got to make more cooling tea for the family. Liang teh is good, especially for Teng since he’s driving around so much. The cool tea will balance the heatiness from this kind of weather. Remember to remind me to buy ingredients from the Chinese medicine shop on our way home,” Ah Mah told Ah Kong.

       Air Pollution and Productivity

      That evening, as Ah Mah served the family the liang teh she had carefully prepared, the family chatted about the weather.

      “Crazy weather, isn’t it? So hot for so long, and then suddenly rain so much on another day. I’m sure quite a number of people will fall sick,” complained Siew Ling.

      “Do you think the hot weather makes the air more dusty?” asked Ah Mah.

      “I know it’s not like the haze we experienced in 2013 and 2015. I remember people were using more water and air-con then, and falling sick.1 But with hot weather for weeks or months, with little rain, don’t you think the air pollution has gotten worse?”

      “Can you imagine the haze in Sydney from the forest fire last December?” commented Siew Ling.

      “I think you’d better drink more water. And better still, don’t stay outside so long. Maybe the outside air is not as good as before. I still remember the haze then. Some people stopped working completely,” coaxed Ah Mah.

      “Wow! Ma, you are quite a kiasu,” remarked Teng at the lengths his mother would go to ensure he stayed well.

      The reality is that Ah Mah dotes on her son. Teng has been filial to invite her and Ah Kong to live with them. In return, as a parent, she should be looking out for his and his family’s health.

      “It is true, Ma. I remember when there was the haze, some of my taxi driver friends stopped driving. Just a slight change in the air quality was enough to influence

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