tag:blogger.com,1999:blog-2830084253401570472.post3701267810262319391..comments2024-03-28T09:22:36.967+13:00Comments on Offsetting Behaviour: "I couldn't be arsed"Eric Cramptonhttp://www.blogger.com/profile/15831696523324469713noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2830084253401570472.post-88473820337714360782014-07-16T22:16:17.776+12:002014-07-16T22:16:17.776+12:00I'm not saying that the owners are doing anyth...I'm not saying that the owners are doing anything wrong or that the situation is inefficient relative to the constraints. <br /><br />I wonder instead whether some of the legislative constraints against greater competition might be relaxed a bit. In particular, occupational licencing rules that protect certain services from competition from immigrant workers and rules around land use and building materials that make construction less competitive than it could be.Eric Cramptonhttp://offsettingbehaviour.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-32466225547161612322014-07-15T16:19:34.008+12:002014-07-15T16:19:34.008+12:00I'm totally cool with people deciding to profi...I'm totally cool with people deciding to profit max or to utility max with their own firms. Where some of the slack allowing that is due to low(ish) domestic competition, I wouldn't mind things that get rid of barriers to competition or that brought in more overseas competition.Eric Cramptonhttp://offsettingbehaviour.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-15366141628352487462014-07-15T15:43:15.474+12:002014-07-15T15:43:15.474+12:00Eric, you should get in touch with your inner Arme...Eric, you should get in touch with your inner Armen Alchian (1950). Entrepreneurs often do not know why they survived in competition.<br /><br />George Stigler in his autobiography told this wonderful story about how you could not get businessmen to admit in a survey that they maximise profits.<br /><br />You are going to their office and asked them: Do they maximise profits?<br /><br />Their answer would be, of course, not. I am here to provide employment to my workers and put a small amount aside for the education of my children.<br /><br />The surveyor would then ask them: if you do were to raise your prices, do you expect to increase your profits?<br /><br />The businessman would answer no.<br /><br />The surveyor how would then ask them: if you were to cut your prices, do you expect to increase your profits?<br /><br />The businessman would answer no.<br /><br />The survey would then ask: can you point to a time in the last 12-months where you substituted profit for some other objective?<br /><br />At this point of time, you would be thrown out of their office as some sort of lunatic.Jim Rosehttp://utopiayouarestandinginit.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-85930087090101802502014-07-11T06:42:47.049+12:002014-07-11T06:42:47.049+12:00I am not sure I understand your claim about the pr...I am not sure I understand your claim about the private sector businesses. Surely the efficiency claim made of markets is that preferences are maximised given the constraints. In this case the biting constraints are the work preferences of business owners that means, among other things, they do not feel compelled to engage in some forms of competition. That this does not fit what others want them to do is neither here nor there: the outcome is still just as efficient as if the owners had a German work ethic?David Smithnoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-50164987517695707232014-07-08T18:57:24.952+12:002014-07-08T18:57:24.952+12:00a good example is Massey University for distance l...a good example is Massey University for distance learning. As the only choice in NZ for economics, the result is high charges, poor technology, some indifferent lecturers (a mixed bag) and an unwillingness to engage with students who dare to complain. A wonder how quickly they would improve if there was real competition.Kevin McMenaminnoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-60096665709905542652014-07-08T13:16:30.659+12:002014-07-08T13:16:30.659+12:00I haven't heard that he is but I can ask. I su...I haven't heard that he is but I can ask. I suspect that if he were, he's already done it.Eric Cramptonhttp://offsettingbehaviour.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-51009183009726009632014-07-08T12:25:10.577+12:002014-07-08T12:25:10.577+12:00Hi Eric
I see Professor Card is also speaking at t...Hi Eric<br />I see Professor Card is also speaking at the NZAE conference in Auckland. Do you know whether Professor Card will be giving a lecture in Wellington?James11noreply@blogger.com