5 ms·
Markets provide price discovery and efficient[0] prices are very valuable. In that sense it's not a waste. Is this even a significant phenomenon? The article m
by dmm 11y ago
Markets provide price discovery and efficient[0] prices are very valuable. In that sense it's not a waste.
Is this even a significant phenomenon? The article mentions 100 ships going the long way but wikipedia says the Suez averages 46 ships per day, or more than 16,500 per year.
[0] The definition of efficient in economics is roughly "It's not possible to make anyone better off without making someone else worse off".
- Amorymeltzer 11y ago>Over 100 ships did this between late October 2015 and the end of the year. That's somewhere between 1 and 1.5 ships a day, which is between 2-3% of daily entrance figures. That's certainly not nothing.
- esmi 11y agoBut it's also not "taking shipping routes back to the 1800s".
- pcarolan 11y agoI think he means waste as in unaccounted externalities such as putting co2 into the atmosphere without paying the social costs.
- davidw 11y ago> The definition of efficient in economics is roughly "It's not possible to make anyone better off without making someone else worse off" That's a terrible definition, because a lot of the economy is not a zero sum game, and it's hard enough as it is to break people out of that kind of thinking.
- deleted 11y ago[deleted]
- gozur88 11y agoBeyond the macroeconomics, two people will not agree on a price unless in doing so they'll both be better off in some way.
- eru 11y agoOh, dmm is just defining pareto efficiency. Said in a more positive light: `a situation is pareto efficient if all mutually beneficial transactions have been done.' (And thus in dmm's words, only the non-mutual beneficial ones remain.)