ECON 202 Lecture Notes - Lecture 5: Robert Nozick, Wii, Ebay
Document Summary
Leaves out those who can afford but don"t buy, and those who are too poor. Basis of our free market economy- most goods are allocated this way. Resource allocation methods- alternatives to allocating scarce resources. Market price- those who are willing and able to pay the price get the resource. Works well in organizations with clear lines and monitored activities. Works badly when there is too much to monitor and authority is easy to fool. Doesn"t work well in an entire economy (north korea) Used in representative governments- determines the goods that are used for private and for public use. Works well with large numbers of people- suppresses the self interest in favor of the social interest (efficient) People work harder trying to win (output is larger) Works best serving one user at a time in a sequence- black friday, restaurants. Or to someone who does something first- bill gates and the computer.
