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152 comments on DrumBeat: July 1, 2006

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Magnus Redin on July 2, 2006 - 3:06pm Permalink | Subthread | Parent | Comments top
I have started to wonder if a large part of the problem is a lack of real competition and consumers who think for themselves. There might be need for more of the famous invisble hand in both ends of the spectrum, in both the earths most prosperous country counted in GDP and the weakest ones.

I wish for more of it at home where we are stuck with inefficient government organisations in many service businesses.

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Don Sailorman on July 2, 2006 - 9:12pm Permalink | Subthread | Parent | Comments top
Neither peak oil nor global warming result from a lack of competition.

The problems result from

  1. the tragedy of the commons
  2. high information and transaction costs, e.g. it is not feasible for me and a thousand others to pay you one cent so that you do not drive a car. In other words, negative externalities are involved, and the market does poorly to correct negative externalities when many people are involved.
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Magnus Redin on July 3, 2006 - 12:57am Permalink | Subthread | Parent | Comments top
True, I were only thinking about powerty and famine.
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odograph on July 3, 2006 - 8:09am Permalink | Subthread | Parent | Comments top
Aren't we supposed to say "poor price discovery" when people go down to buy another SUV (expecting happy motoring)?
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