When thinking of “market distortions” we typically imagine government regulations, taxes and subsidies that prevent market mechanisms from achieving an optimal outcome. For example, if you pay $100 for a 30-minute taxi ride (as is the case in many European capitals), you can easily relate it to a government regulation requiring all taxi drivers to be licensed (at a very high cost). In the absence of such a requirement many more drivers would be able to enter the taxi driving profession, increasing supply and reducing prices.
However, the government is no...
Recent Comments
Legalisation of prostitution in many Australian states lead to a huge increase in demand; once it was no longer unlawful to be a c... Read More
Saturday, 14 June 2014 11:11 AM
First of all thank you for your comment. So you mentioned about possibility of increased demand, I agree that it might "activate" ... Read More
Sunday, 15 June 2014 6:06 PM
These are all interesting points and worthy of discussion. Another issue is how legalisation affects the status of women in socie... Read More
Monday, 16 June 2014 10:10 AM
