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How is a backlog the sign of a market failure? If anything, this shows a responsible way to manage demand while still maintaining power over the transaction.
by danesparza 4y ago
How is a backlog the sign of a market failure? If anything, this shows a responsible way to manage demand while still maintaining power over the transaction. It also serves as a subtle threat to parents: "Cooperate, or we will send you on your way and contact the next person on the waiting list".
Also: Didn't Nintendo set out to create these dynamics with their console launches? Don't they intentionally manage overhead by creating a waiting list?
- Balgair 4y agoGenerally in economics, if there is a waitlist, then the business is not charging enough. Hence a failure. The reasons for this failure are discussed by other people here. One thing to keep in mind is that this is almost exclusively a US problem. Nearly all other countries have significantly more time off for infant care. And as infant care is the most expensive part of daycare most other countries don't have such issues (toddlers subsidize infants in most daycares)