PHIL 149 Lecture 11: Lecture 11 PHIL149
13 Jul 2017
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Document Summary
Economists says that there is still a way with things without market value: shadow prices seeing the prices of bad things by seeing how much the pollution takes away prices of good commodities. Sunstein"s argument for cba: ordinary people"s intuitive judgments about risks and bene ts are systematically biased. ex: ying is safer, bot people are scared, as opposed to the risk of cars. Cba forces regulatory agencies to be explicit about costs and bene ts of regulations not always safe or needed, cba is like an ultimatum. Cba allows a clear way to incorporate scienti c knowledge into policy-making. Sunstein endorses the last step in using market prices: provides a reasonably good approximation of the amount of welfare a policy will produce. Some of the objections of ackerman and heinzerling to cost-bene t analysis: First: terminology two values are commensurable if there is a scale that can be accurately used to measure both of them.
