Discussion about this post

User's avatar
Eric Rasmusen's avatar

You are right about needing to teach externalities very carefully. The increase in price from someone new starting to buy books, tho, IS an externality-- just a pecuniary externality instead of a real externality, and only real externalities reduce efficieecy. It is crucial to teach the difference, a difficult idea. https://rasmusen.org/regulation/ is something you might like.

Expand full comment

No posts