Thursday, October 13, 2005
Business vs. the Net
The producer capture problem, as we learned it in Prof. Dan's urban econ class.
In other words, when the people who stand to make the money set the regulations, they have an incentive to set them in their own favor.
Internet car-buying services let you shop for prices and options without leaving home. "For sale by owner" websites show you houses for sale.
Uh oh. Can't have that, can we?
In other words, when the people who stand to make the money set the regulations, they have an incentive to set them in their own favor.
