Wednesday, March 2, 2011
Best quote: "Prices are an incentive wrapped in knowledge." If only we could wrap prices in bacon, market mechanisms would be a lot more popular. (I can see the t-shirt now... or at least guess who would make it.)
Of course, what the video misses is that market prices don't reflect externalities. If they did, prices would be higher to discourage consumption and encourage activities 1 and 3, but the higher prices would not necessarily encourage 2.
Disclaimer the FCC wants me to put on here every so often: I am not paid by or receive compensation from any site I link to. If I ever am, I will so note.