3 ms·
Global climate accords, putting a price on carbon and thus making steel and burning fuel more expensive. The market can optimize well as long as the cost functi
by Gravityloss 6y ago
Global climate accords, putting a price on carbon and thus making steel and burning fuel more expensive. The market can optimize well as long as the cost function is good.
- vanderZwan 6y agoSure, but it's the determining of the cost function where the irrational debating starts. Similarly, suggesting that there are situations where the cost function is both necessary and has such a high constant overhead that you're better off with a non-market system is a non-starter half of the time.
- Gravityloss 6y agoI don't think discussing about the shape of the cost function is necessarily irrational. Let's say you've inherited a small fortune that includes a mansion. The mansion's upkeep is slowly eating away the fortune. What do you do? You can rationally make some scenarios how to deal with it. Maybe you sell it. Maybe you rent it out. Maybe you invest in it and start a hotel.
- vanderZwan 6y agoWe're not talking about markets and cost functions as a general abstraction here, we're talking about the specific context of adjusting company behavior.
- Gravityloss 6y agoI'm not sure I understand your point. It doesn't really matter which industry sector does the improvements as long as the total improves. Doing it with free market ensures that they happen where they are cheapest.