Category Archives: Econ & Money

The Tragedy of ‘The Tragedy of the Commons’

Trust it to be John Quarterman, who always seems so really smart when I get to be in the same room with him, to be the one to draw my attention to Debunking the Tragedy of the Commons.

When Garrett Hardin published his famous article about the “tragedy of the commons” in Science in December 1968, he cited no evidence whatsoever for his assertion that a commons would always be overgrazed; that community-owned resources would always be mismanaged. Quite a bit of evidence was already available, but he ignored it, because it said quite the opposite: villagers would band together to manage their commons, including setting limits (stints) on how many animals any villager could graze, and they would enforce those limits.

Finding evidence for Hardin's thesis is much harder…

The source is Ian Angus, Links, International Journal of Socialist Renewal, Debunking the `Tragedy of the Commons' (August 24, 2008).

Meanwhile, says John,

So privatization is not, as so many disciples of Hardin have argued, the cure for the non-existant tragedy of the commons. Rather, privatization can be the enemy of the common management of common resources.

This dovetails with some interesting recent legal work, such as Michael Heller's new book, The Gridlock Economy: How Too Much Ownership Wrecks Markets, Stops Innovation, and Costs Lives.

In any case, it's interesting to learn that one of the articles I found most influential in college has a slight empirical problem.

Trouble is, I think I may still believe it, since the tragedy of the commons seems to capture something one sees, or thinks one sees, in real life. As a result I still think in many, most, but not all, cases markets, or managed markets, are the way to structure large swaths of large-scale social and economic organization.

Too much economics Kool-Aid?

Posted in Econ & Money, Legal Philosophy | 13 Comments

Democrats Make You Richer than Republicans

Economic sage Alan Blinder asks Is History Siding With Obama's Economic Plan?

The stark contrast between the whiz-bang Clinton years and the dreary Bush years is familiar because it is so recent. But while it is extreme, it is not atypical. Data for the whole period from 1948 to 2007, during which Republicans occupied the White House for 34 years and Democrats for 26, show average annual growth of real gross national product of 1.64 percent per capita under Republican presidents versus 2.78 percent under Democrats.

Like they say, “If you want to live like a Republican, vote Democratic.”

Posted in Econ & Money | 8 Comments

Calculate Your Obama Tax Cut

ObamaTaxCut.com lets you calculate your Obama tax cut — more or less.

They explain the basis for the numbers here.

Posted in Econ & Money | 2 Comments

A Note About the Economy

I went down to my favorite furniture store, Woodworks, this weekend to get a couple extra shelves for one of the many, many bookcases I've bought from there over the years.

And I was chatting with one of the owners, or maybe he is the owner, I'm not sure, and I commented on the fact that the store seemed pretty busy despite the recession — I'd had to wait a while, while he wrote up the sale of a complicated, somewhat expensive, custom piece to an older couple. No, he said, business was down by a third over last year. And this is for a store that has good prices on decent quality stuff that tends to last.

Posted in Econ & Money | 2 Comments

Ryanair Bids to Become Worst Airline in the World

Independent.ie, Ryanair travellers may lose bookings.

If this article is to be believed, the experience that Delta gave me by mistake (Delta Airlines Canceled Three of Our Four Tickets for No Discernable Reason) is about to be visited on 1,000 Ryanair passengers per day — on purpose. (Spotted via Slashdot, Airline Cancels All Flights Booked Through Third Party Systems.)

The airline yesterday said it would annul all bookings made through third party websites. In a move described as “totally unreasonable” by the Consumers' Association, Ryanair boss Michael O'Leary said the new policy would apply to anyone travelling after next Monday.

The hardline stance affects anyone who booked their Ryanair flights through websites like lastminute.com, v-tours, tui and Opodo.

About 1,000 people use these websites to book Ryanair flights every day, which means 20,000 passengers will be affected by the clampdown if bookings are made an average of 20 days in advance.

Ryanair will give refunds to all of the websites involved, Mr O'Leary said, but passing on those refunds to intending passengers would be a matter for the websites.

“We want to cause as much chaos for the [websites] as possible,” he said.

Is the airline about to go bankrupt? Would any lesser reason cause an airline to hurt its customers in this manner?

I would guess that Ryanair argues it can rescind the tickets because, just being e-tickets, they're not real contracts. I wonder how long that legal theory will survive this sort of behavior.

Posted in Econ & Money | 4 Comments

Do Not Read While Drinking Coffee

Kieran Healy, Sociology refutes Economics (again)

Posted in Econ & Money | Comments Off on Do Not Read While Drinking Coffee