Another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.
Monopoly and Regulation: Excerpt from Two Lessons book
Here’s another excerpt from my book-in-progress, Economics in Two Lessons. Rather than work sequentially, I’m jumping between:
Lesson 1: Market prices reflect and determine opportunity costs faced by consumers and producers.
and
Lesson 2: Market prices don’t reflect all the opportunity costs we face as a society.
In the section over the fold, I’m looking at monopoly and regulation. Next up, public ownership.
As usual, praise is welcome, useful criticism even more so. You can find a draft of the opening sections here.
Are young Australians (mostly) Christians ?
Regular readers will know that I’m not a great fan of analysis based on generations (Boomers, X, Millennials and so on). Most of what passes for insight on this topic consists of the repetition of unchanged cliches about the rigidity and hypocrisy of the old, the laziness and irresponsibility of the young, and so on, applied to whichever cohort happens to be old or young at the time.
But there are some genuine differences between cohorts, typically determine by the time they have entered adulthood. One of these is religion.
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Dutton, cringeworthy and (literally) un-Australian
Peter Dutton’s attempts to promote an “uprising” in support of Christmas, and against “political correctness gone mad” are un-Australian in all sorts of ways, but most obviously in the stunning cultural cringe they reflect. He’s borrowed the catchphrase of a British tabloid in an attempt to import a US culture war campaign that has been going on so long it’s a Christmas tradition in itself (I observed that it was old stuff, back in 2004). This guy is the best the Trumpist faction of the LNP/ON can come up with?
Solving Newcomb’s problem with (possibly non) expected utility theory
The Grauniad has just resurrected Newcomb’s problem. I have a slightly special interest since the problem was popularized by one of my betes noires, Robert Nozick. So, in asserting that there’s a trivial solution, I have something of a bias.
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Sandpit
A new sandpit for long side discussions, conspiracy theories, idees fixes and so on.
Monday Message Board
Another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.
Austrian economists and environmental policy
While working on my long-forthcoming book, Economics in Two Lessons, I came across an interesting article by Edwin Dolan published (with commendably openness to criticism) in the Quarterly Journal of Austrian Economics. The conclusion
On a theoretical level, Austrian writers delight in claiming the moral high ground, condemning polluters as aggressors against property rights. On a practical level, however, they leave pollution victims in the lurch. They invite them to sue, but propose a set of legal standards that would guarantee that polluters would always win. They oppose all government measures to reduce pollution, whether through regulation or through measures to make polluters pay. As a result, at least in cases of environmental mass torts, the Austrian paradigm is a polluter’s dream and a victim’s nightmare. It offers far too little of any practical value toward securing property rights, too little toward facilitating environmental coordination, and too little toward promoting libertarian justice. Much work remains to be done.
Thursday Message Board
The site outage that has kept the blog off air for several days has now been resolved, so here’s a once-off Thursday Message Board, for comments on any topic. Civil discussion and no coarse language, please.
Build it, and they probably won’t come
When the SA Royal Commission on the Nuclear Fuel Cycle brought down its report, I welcomed the conclusion that there was no serious prospect that nuclear power generation would be feasible in Australia. That was unsurprising, since my own submission to the Commission had shown this pretty clearly. As regards the Commission’s recommendation for a waste dump, I argued that there could be no objection in principle, given that SA was an exporter of uranium and the waste had already been generated.
That left open the question of whether the waste dump proposal made economic sense. I’ve now looked at the case in more detail and concluded that it doesn’t. Countries with existing nuclear power industries have made arrangements that may not be satisfactory, but are unlikely to change. There is little prospect of any significant growth in the future. So, building a nuclear waste dump in the hope of attracting demand makes about as much sense as the actions of the protagonist in the movie Field of Dreams, who ploughed up his cornfield to make a baseball diamond for the ghosts of disgraced players.
I make the argument in more detail in this piece in New Matilda. Right on cue, Vietnam, which was one of the hypothetical users of the dump, decided that it would be better to dump nuclear power as uneconomic. Expect more announcements along these lines as the economics of renewable energy improve.
John Quiggin 