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I made a longer comment here https://news.ycombinator.com/item?id=7937577 https://news.ycombinator.com/item?id=7937577 TLDR: if it's a limited resource ("more
by danielweber 12y ago
I made a longer comment here https://news.ycombinator.com/item?id=7937577 https://news.ycombinator.com/item?id=7937577
TLDR: if it's a limited resource ("more demand than supply", colloquially), allocate it by money. If you want to help the poor, give them money instead of breaking the market for the resource.
- dragonwriter 12y ago> TLDR: if it's a limited resource ("more demand than supply", colloquially), allocate it by money. If you want to help the poor, give them money instead of breaking the market for the resource. If it is a public resource with a single public issuer, you don't have the requisites for a functioning market anyhow, so not auctioning it doesn't "break the market".
- danielweber 12y agoIf I want to pay the market clearing price to get a parking spot but cannot, the market has broken. This is otherwise a functioning market. There is demand that can react to prices, and the city can adjust supply based on price data.