Desrtopa comments on Three Parables of Microeconomics - Less Wrong

25 Post author: jimrandomh 09 May 2014 06:18PM

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Comment author: Desrtopa 13 May 2014 05:46:48PM 1 point [-]

The book doesn't look unbiased :-)

It doesn't have to be, if the relevant issue is not whether the overall position of the author is correct, but whether the specific relevant examples are legitimate.

Regulatory capture is certainly a pervasive and significant problem. When given the option to pursue that kind of advantage, corporations would be foolish to pass it up; they'd only be outcompeted by other corporations which were not so reserved. But that doesn't mean that in the absence of regulatory capture, implicit collusion (or even explicit, when the industries can get away with it) will not occur.