Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (15341)	3/28/2006 9:24:32 PM
From: TimF	Respond to of 540824

Externalities are a classic case of "market failure". And its true they can result in cases where the market provides for a sub-optimal position. OTOH even in areas where there is market failure, non-market means of allocating goods and services can still be worse than the market method. The fact that the market may "fail" doesn't mean that government allocation of resources won't fail worse. Edit - Have you heard about Public Choice economics? gmu.edu gmu.edu econlib.org libertyhaven.com Re: Coase theorem - "You can't assume away huge legal battles or stubborn, expensive negotiations." True, but you also can't assume away regulatory costs, or legal battles or stubborn expensive negotiations when the government is making the decisions. The political process can be very expensive and slow, and lawsuits can still happen when you go for a regulatory solution rather than a market based solution.